Go to the directory in which you want to install a further subdirectory. I have a directory TeX:documents in which all subsequent subdirectories are located. You should also create such a directory and then type:
cd TeX:documents makedir testdir cd testdir
Now it is time to type in a text with an editor. This one should end with the postfix .tex, otherwise virtex will not find it:
ed testfile.tex
An example for a short but famous text:
Mr. Drofnats—or ``R. J.,'' as he preferred to be called— was happiest when he was at work typesetting beautiful documents.
When you have typed in and saved this text, you can start with the compilation.