Some clarification needed on creating subthemes

Hi

I've always been confused by the documentation on creating subthemes on this page http://omega.developmentgeeks.com/documentation/subthemes/creating-omega... probably because the doc. is not up-to-date.

The problem the folder/file structure in the documentation of the omega folder does not reflect that in say the current .x-3.0-beta2.

So I want to create a subtheme using omega\starterkits\omega-xhtml

If I get the documentation well, I copy that folder into sites/default/themes where the main "omega" folder is & rename it to something like "myomega-xhtml".

Then rename its .info file to myomega_xhtml.info

The problem, though is the template.php file cannot be edited as mentioned because it has no code, only

/**
 * @file
 * This file is empty by default because the base theme chain (Alpha & Omega) provides
 * all the basic functionality. However, in case you wish to customize the output that Drupal
 * generates through Alpha & Omega this file is a good place to do so.
 * 
 * Alpha comes with a neat solution for keeping this file as clean as possible while the code
 * for your subtheme grows. Please read the README.txt in the /preprocess and /process subfolders
 * for more information on this topic.
 */
 /**
 * Implements hook_theme().
 */

There's also the other file to be edited theme-settings.php which is not in that folder. I however see one in the omega & alpha folders.
So which one is edited? Does one copy one of them & place it in my new subtheme folder or edit one of the 2 where they are & if so, does it matter which of the 2 is taken??

Regarding style sheets, in that new theme folder, do I use the available style folder or I create a "subtheme.css"? Any special configuration? For quite a while, the official theme doc. website is not loading/not accessible.

Thanks & regards