Create a folder called android on your c: drive and create a folder called tools into the android folder.
So it'll look like c:\android\tools and put everything in the tools folder
Do you have the 1X and the arrows at the top?
try it now with usb debugging turned on.
if that doesnt work you can reinstall android sdk
to skip all that you can use "Root explorer" from the market or google(hint hint)
put the u2nl file and autostart.sh file on the root of your sd card
Using Root Explorer, press the "Mount R/W" button at the top it should say "Mount R/O' now(this allows you to write files to your phone(aka adb remount))
Using Root Explorer, copy "u2nl" to root/system/bin/
Using Root Explorer, create a new folder within root/data/ and name it "opt" (without quotes).
Using Root Explorer, copy "autostart.sh" to root/data/opt/
then go back to those files and long press them, click permissions on the pop up box and check all the squares(do this for both files u2nl and autostart.sh)