These are rough docs until the handbook can be rewritten to match the rewritten module.

1) Make sure you have Panels, Views, Bio, and CCK installed. If you want profile visits, enable and configure the statistics module as well.
2) Untar advanced profile kit into sites/all/modules
3) Copy advanced_profile_author-pane.tpl.php to the root of your theme.
4) Enable advanced profile kit
5) Go to ?q=admin/settings/advanced-profile to generate the stock content type.
6) Set up bio to use the uprofile type you just created.
7) Create profile nodes for your users.