Initial Setup - File System
When you login with your privileged account, you will be shown an administrative screen with a couple of maintenance tasks that require your attention. You can get back to this screen by going to Administer - Logs - Status Report any time. You can resolve the Cron maintenance task by clicking on the link "run cron manually". The next section goes through the process of setting cron.
In this section I will go through the steps to setup the file system. This setting controls where files are stored on your server when uploaded. The two settings are "Public" or "Private". For most settings "Public" is just fine. "Private" allows you to restrict the ability for some users to download files uploaded by other users. If you are setting up individual user accounts for users to your account and want increased security you may want to consider the "Private" setting.
Drupal requires the file system path and a temporary directory to store files. Depending on your Unix servers file system settings a file path may be automatically created otherwise, create a file and tmp (files/tmp) directory using your FTP client software. You will need to set the permissions to this directory to 777 for Drupal to work effectively.
If you don't have an FTP client yet, you can select any of the listed tools below from the "Resource" section to perform this task.
In this video you will see how to setup the file system on your web server.