• Download current version from https://drupal.org/project/drupal [I downloaded 7.22].
• Unzip and rename default drupal-7.22 directory to project name of your choice [I used “knowledge”]
• Run installation on http://localhost:8080/<proj_name> [http://localhost:8080/knowledge]. Comment: I used localhost:8080 because my apache installation use port 8080. You may want to use http://localhost/<proj_name>
• Choose profile [standard], click next
• Optional: Put the translation file (.po extention), that you downloaded from the translation server, in \profiles\standard\translations,
  and refresh the choose language page. Now you see your selected language next to a radio button [Hebrew], but you still continue the installation when English is selected (this step replaces default system strings with the selected language strings, when the selected language is the site's active language)
• Before you continue, create database and databse user:
  

  CREATE DATABASE <db_name>;
  grant SELECT, INSERT, DELETE, UPDATE, EXECUTE, CREATE, DROP,ALTER on know.* to <user_name> identified by  '<password>';

  I used:

  CREATE DATABASE know;
  grant SELECT, INSERT, DELETE, UPDATE, EXECUTE, CREATE, DROP,ALTER on know.* to  hamuf identified by  'In[dia]10';

• back to installation: On the Set up database, set <db_name> as Database name, <user_name> as Database username and <password> as Database password.
  Ignore advance options and continue
• After installation is over you are forwarded to the SITE INFORMATION page. Username: is the site’s default administrator, then I use Israel and Asia/Jerusalem and save and continue.
• And the installation is over.
• Then I remembered that I actually wanted to set time zone to Asia/Tel Aviv, so I went to Home » Administration » Configuration » Regional and language and changed the installation settings.
  I go to Home » Administration » Configuration » System and change the site name from localhost to knowledge, and save.

For more detailed information go to https://drupal.org/documentation/install