1. Create a new MySQL database. The steps to create a database may be different depending on your host but 9 times out of 10 you will likely be using CPanel and the process is simple. GoDaddy steps are a bit different but still pretty straightforward. Check your servers docs to find out how to create one. After creating the database make note of the database name, username, password and host.
2. Unzip the db zip file and import the unzipped sql file into your new database. See your servers help files for these easy steps.
3. Unzip the web site files onto your computer. Open up the wp-config.php file in a text editor. Notepad in Windows sometimes jumbles up this file. If it doesn’t seem orderly, try using a different text editor to open it. TextPad is a good one. Now fill in the details you gathered from step 1. (database name, username, password and host)
4. At this point you can upload the files to your server via FTP but there is a quicker way. If you decide to use FTP, switch the upload mode to Binary because in most of my blogs I sell there is a file that needs to be uploaded in Binary mode (the file is for Syndicate Kahuna). The rest of the files are fine to be uploaded in binary mode as well. A quicker way than FTP’ing all the files unzipped is to rezip them and upload the zip to the server. Most Control Panels, if not all, allow you to unzip files from the server which saves a bunch of upload time. Go that route if you can.
5. You should be ready to go at this point. There might be another zip file included which is just a text file that contains all the accounts usernames and passwords that were created for your site. Your WordPress login ID will be in there.

Let me know if you need any further help.

More info: Setting Up A Newly Acquired Blog Overview