For the impatient:

Execute the get_started.py script located on this directory,
that will guide you through setting up the default kvm test
scenario:

 * Guest install with Fedora 12
 * Boot, reboot and shutdown test

The script will help you to create all the directories, and
even get the OS iso in case you don't have it yet.

For the not so impatient:

You are *strongly* advised to read the online docs:

http://www.linux-kvm.org/page/KVM-Autotest/Client_Install

So you can have a better idea of how the test is organized
and how it works.