Have you downloaded it yet, or just looked at the instructions? Before you start, you need to remove HTC Sync, MyPhoneExplorer or any other app that's capable of talking to the phone via the PC. And connect your phone to the PC in Charge Only mode, ensuring USB Debugging is enabled (Settings -> Applications -> Development). Once done, you download zip file and extract all of the contents to a folder of your choosing on your PC. Inside that folder, there's a file called hack-ace.cmd, right click that and select Run as Administrator and the tool should start itself. In the next menu, select 1 and it should do root, S-OFF and install ClockworkMod for you.

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Rather than give you instructions for installing ARHD now, just try the Ace Hack Kit first, then I'll try and sort you out with installing a ROM. Is that a bit clearer?