Hey.
It is asking for information on the MySQL Database you want it to use.
(I assume, since you are using XAMPP, that you are using MySQL)
Have you create a database for it yet?
If not, try this:
- Open up the XAMPP control panel.
- Make sure Apache and MySQL are both running. (There should be a green "running" label next to both, and their respective start/stop buttons should read "stop")
- Click the "Admin" button next to MySQL. That should open up phpMyAdmin in your browser.
- From there, click the "Privileges" tab, and select "Add new user" from below the user list.
- Fill in the "Login information", selecting "Local" from the "Host" drop-down.
- In the "Database for user" box, check "Create database with same name and grant all privileges".
- Click GO.
And that should be it.
Now you should be able to complete that part of the Drupal installation, using the username you chose as both the "Database name" and "Database username".