Work in progress! Comments are welcome. Last edit 8/19/2012.
1. Enable the webserver (the software is lighttpd, otherwise known as lighty) in N4F.
----- Under Services|Webserver, select HTTP, enter a port (not the normal HTTP port, port 80 but something close, like 8080) enter in the root directory of the website and select enable directory setting (for now, you'll disable this later). Hit the Save and Restart button.
----- Create a text file with the text string between the double quotes in it, "<?php phpinfo(); ?>". Call it php-info.php and put it in the root directory of the website. (you should already have created a share in N4F to that website directory so you can file access through other systems)
----- (let's say your IP address of your N4F server is 10.0.0.2) If you did the above correct then when you type in a browser http://10.0.0.2:8080/php-info.php and you'll get the familiar PHP info page as you can see here.
2. Download the latest full install zip of Drupal. Unzip and place the files in the Drupal directory (notice one of the files is install.php) into the root directory.
3. Type http://10.0.0.2:8080/ in your browser and the index.php file will automatically run, starting the install and configuration of Drupal.
----- First page: Standard install should be picked, you want it all.
----- Second Page: If you want another language other than English then you need to add that language (separate step).
----- Third page: It gets ugly for me here. I do not have gd (suggested installs from here install with failures); under file systems Drupal cannot create a directory, I could do it manually but the permissions are the real problem; Drupal wants better a unicode library but it will survive without one; can't create a settings file probably due to the aforementioned permissions issue.
I added one of the IDE HDDs I had around for a full N4F install. I got the IDE->SATA converter and the first one didn't work but the second did. I used Alexey's n4free_usb_full.bin file and managed to get N4F v67 on the HDD on my test system. I have one more step to take before I continue with the Drupal install but I am stuck, I cannot upgrade the N4F install. Since I didn't use a CD/DVD none of the current upgraded N4F images work. Maybe Alexey's work points to redoing this install with the latest N4F versions (Alexey has N4F v188 on the SourceForge site updated hours ago) but I fail to see how that is done. Alexey is responding in these forums though so I'll work that out. Stay tuned!