First of all make sure that php and mysql are both working, by creating an index.php page in your htdocs folder and browsing to it with localhost in your browser, as in http://localhost/. Been a while since I've used xampp so I'm going off memory.
As soon as you can see a php script working, copy your joomla unzipped folder to something like /htdocs/joomla/. Then simply browse to localhost/joomla and enter your mysql user permissions and you're on your way! Joomla install will take care of the rest. You probably need to create your database first, though.
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