I appreciate the help Admin! But, I am still confused on what to do after dragging stuff in...im not that good at programming yet...
Just follow the written instructions.
After you drag it in, you select the I/O pins you want to use - although it'll automagically chose some for you that will most likely work anyway.
You then tell it to generate, and it will create all the code and files for you.
Open up the folder and then double click the AVR Studio project file it made.
It will then have all the *working* sample code you need, of which you can play around with until you really understand it.