You got all of that about right, just make sure that your KFS files are in Zip format, I'm guessing they can't read RAR. And a guide thread has already been attempted a couple of times (like
here) but there's hardly any point to it, the file types are more or less basic and their definitions self-explanatory. Advanced options have mostly been explained over induvidual threads which a well placed Search should have no trouble finding.
At this point, asking someone to write a complete guide is pointless, no one's gonna invest that much effort without a good reason. When you have a question (or questions) just make a new thread, it'll be faster.