XAMPP is composed of Apache web server and MySQL database.
You don't need to worry about anything else. As soon as you install xampp, start apache and mysql, you are ready to go.

Installing XAMPP
1. Download XAMPP here
2. install it
3. make sure to click start on "Apache" and "MySQL"
4. your directory should be under c:/xampp/htdocs
5. create a folder under htdocs
6. in that folder is where you're going to save all your files including images.
7. to test it in your localhost, type this in your browser "http://localhost/yourfolder/yourfile.php"

Accessing MySQL
1. type http://localhost in your browser
2. Under tools, click "phpMyAdmin"

Creating MySQL Database using phpMyAdmin
1. Enter a desired name for a database in "create database" text box
2. Click create

Creating Tables
1. Find your newly created database on your left
2. Create a table and enter number of fields
3. Click Go
4. Type the fields name, choose a data type, and enter length for each fields.
5. Click Save