So, you've downloaded AGS. You want to make an adventure game. But where do you start?
(NOTE: before we start, this tutorial was made using v3.0 of AGS. If you have a newer version, there may be minor inconsistencies in the screenshots where extra options have been added and so forth, but most of what's here should still apply).
Start up the AGS Editor by double-clicking the AGSEditor.exe file, and you should be greeted by the following screen:

Make sure that "Start a new game" is selected, and click Continue. You'll be presented with the Create New Game wizard:

So, without further ado, click Next, and you'll see the Select Template screen:

Here, you need to choose which template you're going to use for your new game. AGS comes with several, and you can find others for download on the AGS Forums.
The "Sierra-style" template is what we'll be using, as it has classic Sierra adventure game UI and comes with some default graphics to get you started quickly. The "Empty Game" template is something you may want to use later on when you're familiar with AGS - it comes with no default graphics at all.
So, select "Sierra-style" and click Next.

Finally, you need to decide on what to call your game. In the first box you can type the full name for your game. This is what will be displayed in the game title bar when it's running in a window, and it's used for a couple of other things too. For the purposes of this tutorial, I'm going to call it the incredibly lame "Roger's Adventure", but you can use whatever you like.
The second box asks you for the game file name. This is only used for the name of the folder that your game is created in, and the name of the final EXE file you compile.
The third box allows you to choose where AGS should put the game files -- the default is your My Documents folder, and I'm going to stick with that.
Click the Finish button, and after a short wait you should be presented with the main AGS Editor window:

So, there's your new game, ready and waiting for you to create it!
The main way that you navigate around the editor is using the project tree in the top-right corner, which allows you to access all the various parts of your game. Let's start by scrolling to the top of the tree, and double-clicking the "General Settings" node:

This screenshot demonstrates three of the main editor features. The project tree, as we've already discussed, gives you access to the various parts of your game. The property grid, in the bottom-right, is where item-specific properties are accessed. It's not used in the Game Settings window, but we'll see it in action soon!
Finally, the AGS editor allows you to have several windows open at once, and they are "tabbed" across the open windows bar at the top so that you can easily switch between them. Use the Close button to close a window once you're finished with it.
Now, since we're on the Settings pane, let's briefly examine the various options we have in front of us. Make sure these options are enabled to begin with:
Personally, I would always enable these four options when starting a new game. As you get a feel for AGS, you can decide what suits you best, and change these options again later.
Now, at this stage we really need to decide whether we want to create a palette-based (8-bit, 256-colour) game, or a hi-color (16- or 32-bit) game.
256-colour games are much more complicated to make due to having to deal with the palette, they are not supported by the Direct3D driver, and may not run well on some modern graphics cards. Although they can give you the authentic retro feel, unless you really need to use palette-cycling effects, it's recommended that you stay away from making new 256-colour games.
Double-click the "Colours" node in the project tree. You should see this:

The palette display has a grid with the 256 colour slots on it. The first 40 colours are game-wide colours, which means that those palette slots have a fixed colour throughout the game, in every single room.
The remaining slots, marked "X", are background colours and vary from room to room. This allows for different types of background to use different ranges of colours.
The default palette setup is a little badly weighted. Your GUI and main character graphics will have to use just the game-wide colours, since they are shown in more than one room. Therefore, unless you want a greyscale main character, the colours displayed are probably not enough.
So, let's swap some background colours for some game-wide ones. Select the first "X" slot, then hold shift and click on the last slot in the row marked "80". The screen should look as follows:

We can now see the Property Grid in action. Change the "ColourType" setting from "Background" to "Gamewide", and you'll see the selected "X"s turn into various colours.
If you select one of these colours you'll see its RGB colour values in the property grid, where you can adjust the colour of that slot. If you don't want to do this manually for every colour, you can set up slots 42-95 in another paint package, save a BMP file, and then right-click on the selected slots and choose the "Replace selected slots from file" option.
What colours you use is up to you, and depends on what sort of colour scheme you're going for with your graphics.
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You should set up the palette as well as you can now, because changing it later may require you to re-import some graphics.
Back on the Game Settings pane, check out the very top option in the list. It's called "Colour depth", and all you have to do is change it to your desired colour depth. A warning message will prompt you to make sure. Confirm it, and you're done.
Having decided on our colour depth, the other important decision to make at this stage is what resolution we want the game to run at. Higher resolutions allow you to have more detailed graphics, but they need more memory and run slower than lower resolutions.
Go back to the General Settings pane, and select your chosen resolution from the "Resolution" drop-down list.
Go to part 2: Creating your first room