How to set up a CraftBukkit server on linux? (Ubuntu)?

I'll copy the directions from the help page and address what confuses me.
1. Download CraftBukkit's latest build: CraftBukkit - Recommended Build
2. Put the.jar in a folder, for this example we'll use a generic one: ~/craftbukkit (Does this have to be done through the terminal?)
3. Move to the above directory in terminal with 'cd ~/craftbukkit'
4. Create a new file in the minecraft folder and name it craftbukkit.sh
5. Edit the file and paste this into it: (Edit what file? Paste this where?)
#!/bin/sh
BINDIR=$(dirname "$(readlink -fn "$0")")
cd "$BINDIR"
java -Xmx1024M -jar craftbukkit.jar -o true

6. Make the file executable, either by running "chmod +x ~/craftbukkit/craftbukkit.sh" in a terminal, or by changing the permissions in the file's properties. (It says "No such file or directory", but in another terminal it says I can't create the file because it already exists.)
7. Then, in terminal, type '~/craftbukkit/craftbukkit.sh' to run to start the server.
8. When you're done playing around, issue the "stop" command in console.
If you plan to run the server more permanently an init script like this one (recommended) [1]
If you want to run your server with screen, you can use a script like this one (recommended) ABM

Guest

2. You can do this in a terminal or via a file manager, whichever you are comfortable with. I use the Midnight Commander in a terminal. Open a terminal and type mc. Makes it much easier to do stuff like this

Steps 4-6: I don't do it that way. I create a file called go, and in it is one line only:

java -Xmx1024M -Xms1024M -jar craftbukkit-dev.jar

then to run the server, I cd to the directory that has the server, in the case of the example above ~/craftbukkit, and I type:

sh go

The author of this article tries to make it easy for those that don't know what they are doing, but I think they over complicate it. I run my server permanently in a screen, but I don't use the scripts they describe. I just start the screen session, cd to my server directory, sh go and we're off and running.

Feel free to PM me if you need help with this, I've run minecraft servers for a few years, and it is very easy to do so. Much easier then they make it out to be.

are not really necessary, and I do not put that in the file that I use to start my server.

Neerp