Alllllllrighty.
Well getting your FTP thingy was the first and very vital step.
Now, as for website design I recommend get Dreamweaver MX 2004. You can get a 30-day free trial on
http://www.macromedia.com/
They also have plenty of tips and tutorials on their site. Or you could just google up some "dreamweaver tutorials" "html tutorials" or "website design tutorials" and you're bound to find some help.
It's a little pricey after the 30 days, but I think it's worth it... of course, I got the entire macromedia studio for FREE because I work as a webmaster. Talk about your perks
Aaannnyyyway, you make the site, then connect to the FTP server using the info I sent with the email after your subdomain was created. Then you upload your site straight to it and you're probably done!
All else fails, call microsoft.
http://www.dbspot.com/ - Free subdomain hosting. Unlimited space/transfer. It's nice, I like it, you should too!