Make sure your browser and development webserver meet the requirements specified on the features page.
Extract the zip archive you downloaded. Use folder names when extracting. After extraction you should have a new folder 'phppeanuts' (may be with some version info added to its name) with subfolders 'classes', 'emptyapp', images', 'includes', 'scripts' and 'style'. If you did not get these folders but lots of files, you did not use folder names. Try again in an empty folder and make sure you use folder names.
Put the content of the phppeanuts folder you extracted in a folder in the httpdocs area on your development web server. This may be your wwwroot or any other folder. Remember this folder, every file or folder reference in phpPeanuts will be relative to this folder, or the classes folder in this folder.
Edit the scriptMakeSettings.php file in the classes folder. Insert the right settings for your MySql database to work. Save the file. If you downloaded it first, upload it back to where it came from.
That's it! To test you setup type an url into your web browser that refers to the 'index.php' script in the 'emptyapp' folder. If you see the same page as this one on the phppeanuts website you have successfully installed phppeanuts for development.
Once you got phpPeanuts running, it is vital that you get the error handler in development mode. And if you did not, it may be even more important. If your host name is 'localhost' this should not be a problem. Otherwise you will get the error page which is only there for end users and should not reaveal any of the technical details that you need as a developer. Then see how to handle E_USER_WARNING and E_USER_ERROR.
If you want to experiment with the examples from the tutorial, see how to install the examples.
When using phpPeanuts you should be aware that the default user interface it generates allows users to change almost any application data. If your server is somehow connected to the internet, a company network or a wireless LAN, read how to add user authorization to an application.