The easiest way is to use nukesql.php available from http://www.nukeresources.com.
This will automatically setup all the SQL database and check to see if you've got config.php set up right.
Before you run nukesql.php, make sure you've downloaded the right one for your version of nuke. You also need to set up config.php.
Upload nukesql.php to the same directory as config.php. Now, direct your browser to http://www.yourdomain.com/nukesql.php and it will set up the database for you.
To see what nukesql.php looks like when it's run, go here
Method 2 - Using phpMyAdmin and the nuke.sql file
If you change the table prefix in the nuke.sql file, you
must change the $prefix and $user_prefix values in config.php
Use phpMyAdmin to connect to your SQL Database.
Select SQL from the top of the page:
Next, enter the location of nuke.sql. In this example, it's here: c:\downloads\nuke\sql
uke.sql.
This will be different depending on where you unpacked the nuke***.tar.gz file to start with
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If you change the table prefix in the nuke.sql file, you
must change the $prefix and $user_prefix values in config.php
