You did the right thing by installing the appdev.zip file, since that is the WordPress theme zip file that has to uploaded for theme installation. For sample data, there should be a file named sample-data.xml file in the larger zip- the one you extracted. Import the data through WordPress Admin tab under Tools->import->WordPress. Pls have a look my videos here – http://www.youtube.com/watch?v=EF3sJyw0JaI for setup of my earlier theme to get a idea on how to have demo site setup. If you are still having trouble, pls post me a private reply here with temp login to your site and I can help you out with the entire thing. Thanks!