I'll copy the directions from the help page and address what confuses me.
1. Download CraftBukkit's latest build: CraftBukkit - Recommended Build
2. Put the.jar in a folder, for this example we'll use a generic one: ~/craftbukkit (Does this have to be done through the terminal?)
3. Move to the above directory in terminal with 'cd ~/craftbukkit'
4. Create a new file in the minecraft folder and name it craftbukkit.sh
5. Edit the file and paste this into it: (Edit what file? Paste this where?)
#!/bin/sh
BINDIR=$(dirname "$(readlink -fn "$0")")
cd "$BINDIR"
java -Xmx1024M -jar craftbukkit.jar -o true
6. Make the file executable, either by running "chmod +x ~/craftbukkit/craftbukkit.sh" in a terminal, or by changing the permissions in the file's properties. (It says "No such file or directory", but in another terminal it says I can't create the file because it already exists.)
7. Then, in terminal, type '~/craftbukkit/craftbukkit.sh' to run to start the server.
8. When you're done playing around, issue the "stop" command in console.
If you plan to run the server more permanently an init script like this one (recommended) [1]
If you want to run your server with screen, you can use a script like this one (recommended) ABM
Read more: How to set up a CraftBukkit server on linux? (Ubuntu)?
