Magento Tutorials: Magento Theme Installation on 1.7 Version
1. Copy the folder name book_store ( it is the folder name of your theme) Path: app/design/frontend/default to your magento folder in the respective path: /www/magento/app/design/frontend/default
Note: In our case Theme Folder name is book_store. You need to use your theme’s folder name.
2. Copy the folder name book_store Path: skin/frontend/default to your magento folder in the respective path:/www/magento/skin/frontend/default
3. Copy the folder name book_store_slider (You can give any other name as well)
Path: /js to your magento folder in therespective path: /www/magento/js.
Note: Make sure you call the same name in your theme’s page.xml
4. Login to the admin panel System->Configuration-> (On the left panel)->configuration->design
a. Set your theme:

b. In the same panel set the logo image to logo.png as below.

Note: For changing the home page content, Static Block content, please refer to your xml files such as home.xml etc.
