So far I used the 'Customize Your Site' function to do the basics. I have also downloaded generated_advanced_skin_preview from the admin console and edited the theme.css file (to change the Nav) and edited j-ui-sprite.png file and added it to the images folder. I renamed the folder michaels_theme, compressed it (attached) and tried to upload it in the admin console (see below).
I got the error message:
Do you have any ideas why it wont upload?
I am on a mac so to zip the folder I right click on it and select compress, is this the correct way to do it?