If you type in this command "ls -al" you can see all the directorys/files in your current directory.
That guide says just to make the "bin" directory in your home directory so that should be the main directory when you log into the account be it shell or ftp.
To get into your home directory(/home/username) from anywhere in your shell type "cd ~" and to check your current directory type "pwd" (print working directory)
To create the folder in the shell type in "mkdir bin" then do "ls -al" to make sure its there.
Then you will be able to use the "cd" (change directory) command.
Heres the "find" command incase you want to try and find that "bin" directory you already create if its there.
find ~/ -name FILE
Replace FILE with a file name or directory.
Hopefully this helps you, and yes Putty is supose to look like a dos window, lots of text.