Installing WordPress in its own subdirectory

I am attempting a local installation of WordPress 3.2.1 on a Windows XP (SP3) 32-bit computer that is not connected to the internet.
I have an XAMPP 1.7.4 installation as web server with Moodle installed and running. In order to separate the installations I would prefer to put the core files into a sub-directory called WPress or Blog as suggested in the WordPress instructions. However here there is a little confusion. So I should like to be clear about what I am doing. Is it appropriate to:
1) Unzip the WordPress files from WordPress321.zip into the root of the web server – in this case c:\xampp\htdocs – which places the core files into that root inside a wordpress subdirectory;
2) Rename that subdirectory to blog or WPress – or whatever is desired (in the URL listed below I have used blog);
3) Rename wp-config-sample.php to wp-config.php and make the recommended changes to databasename, username, password and hostname – plus the 4 keys (but not the salts); and then
4) Run the installation script using the URL http://localhost/blog/wp-admin/install.php

If I have my logic correct this should result in a successful installation.

The only differences between this and the published instructions are:
a) retention and subsequent renaming (to ‘blog’) of the wordpress directory following the zip extraction; and
b) in place renaming and alteration of wp-config-sample.php prior to running the install script.

I dont see any logical problems with this slightly altered process.

Any advice would be appreciated.

Regards

Paul R