You may want to start again.
First you unpack or install XAMPP to C:\xampplite
Then you double click on the xampp_control.exe and Start Apache and MySQL but to do anything serious with XAMPP you should really right click on this file and select to Run as Administrator.
When they both show running all is well.
Next you go to http://localhost
in your browser and it will redirect you to the splash screen where you select your language and proceed to the Welcome page.
What you don't do is configure anything until you have exercised all the demos in the left menu of the Welcome page to test your installation.
When you are happy that the installation is working then you can add your web site files into C:\xampplite\htdocs in a folder of choice, for example C:\xampplite\htdocs\wordpress
To see your site you would type http://locahost/wordpress
in browser and proceed to install WP.
Don't use the command console.
Use the provided GUIs like http://locahost/phpmyadmin
to setup WP's database.
Use Windows Explorer to locate the files in the C:\xampplite folder only, you can edit files from within Explorer if required.
Don't edit any configuration files as the defaults work just fine for what you are trying to do.
I am not sure if the lite version is suitable for WP but only time will tell.
I hope this helps you to move forward.
Here are a couple of links that also have some useful info for new users:http://www.apachefriends.org/en/xampp-windows.htmlhttp://www.apachefriends.org/en/faq-xampp-windows.html
Plus the readme file in the c:\xampplite folder,