The site is confusing in terms of the versioning and names. Selenium is the name of the entire project which started off as Selenium RC (remote control). Selenium RC is the old version of the API which is also sometimes called Selenium 1. Selenium 2 is the newest version and the latest release was last week being Selenium RC2 (release candidate). This uses a different API to Selenium RC. The new API is known as WebDriver. The new API still allows you to access the older Selenium RC but only for backwards compatibility.
Since you're starting now, there is no reason for you to use the Selenium RC API. You should instead use the advanced user interactions which are part of WebDriver. Setting up WebDriver is pretty easy and there is a decent guide on it here. You should note that the API used there is the older standard (2.0 beta) which uses WebElements. The new API (advanced user interactions) decouples actions from the elements they are performed on a lot more. I would recommend you use the latest versions of the API which is being actively supported rather than older deprecated versions.
Since you want to do this all locally, the second link I gave you should be enough to get you up and running. Assuming you're going to be using the Java bindings it is as simple as:
public class Selenium2Example {
public static void main(String[] args) {
// Create a new instance of the Firefox driver
// Notice that the remainder of the code relies on the interface,
// not the implementation.
WebDriver driver = new FirefoxDriver();
// And now use this to visit Google
driver.get("http://www.google.com");
Actions builder = new Actions( driver );
builder.sendKeys( driver.findElement( By.name("q") ), "Cheese!" );
Action action = builder.build();
action.perform();
//Close the browser
driver.quit();
}
}
This is the example code edited to use advanced user interactions.