Setup wordpress with mysql database on server

Hi me and my friend we are a team who wants to run wordpress from home. We live quite far and this is the best option for us at this time.

We have setup webMatrix which use TFS but when we try to setup wordpress we got stuck. We even tried to use phpmyadmin with mysql that is using free mysql database somewhere and we are still stuck.

Please give us any ideas how we can set this up so we can work together online.

Thanks, Darko