Atahualpa 101 - Please Help!!

I am new to Wordpress and have managed to figure out how to upload this theme, but am now lost! I am simply trying to get my new blog set up and usable. (www.lovepalmspringshomes.com)

Do I use all the buttons on the atahualpa dashboard instead of the wordpress dashboard to build my site? Do I need to upload content to the Godaddy server (my hosting) or can I just build the pages on the site? For example, I want to add a backround photo for the Home page. And I want to put contact info in the sidebar. (Will move the current photo from the center of the HP.)

I also want to add different gadgets like Contact Form 7 and Twitter, some to the side bars and others (like embedding my YouTube channel) on the Home Page. I see them in the Installed section of WP but they do not appear on any pages...? (this is also an example of being confused about the above: whether to use the WP Dashboard or the Atahualpa Dashboard).

I am thinking that I must be over-complicating this and that it can't be that difficult, but so far I am overwhelmed. Any simple 1-2-3 tutorial out there? Would WP for Dummies help?

Thanks.