Step 1.
MAKE SURE YOU'RE WORKING WITH THE LATEST VERSION ! (Check your zip file name for your version, and the downloads page for the latest version - are they the same ???)

Step 2.
Upload the Bundle zip file to your web root and unzip. The files will unpack directly into the directory.

Step 3.
Make the web root directory writable, and the .htaccess file writable.

Step 4.
Create a database for Wordpress to use, remmembering database name, user name, and password.

Step 5.
If you plan to aggregate feeds in your blog, have the feed URLs ready. If you plan to use Google Adsense on your blog, have your Publisher-ID ready.

Step 6.
Now visit your new site with your browser, and follow the prompts. Once installation is completed..

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After installation

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Step 7.
Although installed, you now need to update your permalink options. Simply log-in to your new blog (/wp-admin/), and select 'options' from the left hand menu. Now select 'permalinks' from the list of options across the top menu.

This will land you at your permalinks settings page. Dont change anything. JUST PRESS THE 'UPDATE PERMALINK STRUCTURE' BUTTON. That will cause Wordpress to update your .htaccess file as required for mod_rewrite to interpret your URLs.

To verify that permalinks are operating correctly, you can now click on the title of the first post (which should load correctly). If it doesn't, try holding down shift while reloading to ensure you're viewing a non-cached copy.

Step 8.
Now that we're done setting up, you should return the permissions of your web root, and your .htaccess file to their initial, secure settings.

YOU'RE DONE !