you entered an incorrect password. that is why you received login error.
For this forum also the idea is same, get a web host supporting php, mysql, a decent server and bandwidth, then upload/install vBulletin (phpBB is a freeware alternative - however vBulletin just has some good extra features) and your forum is ready.
The rest of the tricks are automatically done like you mentioned the expansion of textarea by vBulletin itself. For the skins you have to install (buy or get a free one) and then make changes to suit your needs.
And you got to buy a domain name too
if going for a top level .com/.net/.org domains