how to set up FileZlla client side SFTP

Hi, I use XAMPP and I have Apache, PHP, MySQL (with phpMyAdmin) all up and running as well as WordPress working on my localhost. My question is do how do I set up FileZilla client side with SFTP, b/c I think you need this set up in order to create and install existing Themes/Plugins and cannot just drag and drop. I tried with dragging images to the
\wordpress\wp-content\uploads\2012 folder, but when I refresh localhost/wordpress, and check the Dashboard, it doesn’t show up in my Media library so it must be some extra level of security, so if someone could so kindly show me simple step by step.

I already downloaded FileZilla FTP client side (so I need help with knowing what the values for the ports and hosts etc I require to get going)

I appreciate all the help.