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A few notes: If you set up an account using your name, it may be easier to remember than making a fake one.  For Patron Group, choose anything from what's listed.  User Name Username is essential, despite not having a red asterisk next to it; find it under Extended Information.  Use a real email address - fake email could cause the FOLIO project to be considered spam, but you'll need a valid email address (or perhaps a phone number) in order to set your user's password (which can be done once you're done setting up the account).  What you define for permissions determines what apps your user will see at the top of the screen.  

To set the user's password - there may be a link   a "Folio password" entry,to the right of Username in Extended Information, may appear after you've saved the user account information.  This will give you the option to send the user a password reset email. Easier is probably to finish setting up the user, log out of the folio account, and do the following: at the login screen, choose Forgot Password, and put in the username.