Using Permalink – I would like a really, really simple step by step guide.

Why “test”? Your blog is in the “blog” directory…
http://www.filmn.co.uk/blog/
Go admin > Options > Permalinks.
Select the radio button that you want, e.g. “custom”
– if you want a word AFTER “blog: > make the structure like
word/%postname%
In the right bottom corner click Update.
Make sure you have a writable (chmod=666) .htaccess file in the “blog” directory BEFORE you start this operation.

Note. Probably, it is not the best to have only the postname in the permalink structure. YMMV.