Hi Melv, there's no stupid questions here. Chances are others didn't understand the description either so you are helping them in the process. That's always a good thing here.
Ok, lets try to clear it up a bit. In step 1, you open a blank canvas in the size and resolution you need. (see, I had left that little bit out so it was confusing)
Now you should make sure you are in the default colors of white on top and black below in your foreground/background colors. These are the default colors.
Select the gradient tool in the tool palette and set it to the circular (radial) gradient. Select a point in the center of your canvas or a bit off center if you prefer and drag the line outward. This should leave you with a light circular center and a dark outer rim on your canvas. (If not just flip your foreground and background colors and try again)
Now go to your forground and background colors and choose two colors of your choice. I recommend a light color and a darker color to create contrast.
Go to your filter drop down and choose Render > Clouds
That will create clouds that totally obliterate your previous gradient so to allow the gradient to show through you need to lesson the opacity of clouds. You do this by going to Edit > Fade Clouds and adjust the slider way back until you get amount of gradient vs colored clouds that you prefer.
Let me know if that helps clarify things better for you. Good luck.
DJ