How to use this powershell script?

I would like to create security groups on SharePoint 2010 using powershell. I found this script http://sharepointryan.com/2011/07/20/create-sharepoint-groups-using-powershell/ but since I am new to powershell I don't really know how to use it. Can somebody walk me through it?
MisUszatekAsked:
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Justin SmithConnect With a Mentor Sr. System EngineerCommented:
Copy this to a text doc and save it as CreateGroups.ps1 (you can name it whatever you want).

Bring up SharePoint Management Console and navigate to the folder that contains the script.  You have to "dot source" the file to make the function available to use.  Type . .\CreateGroups.ps1 and hit enter.  

Now you can use the New-SPGroup commandlet.  For example....

New-SPGroup -Web http://intranet -GroupName "Test Group" -OwnerName DOMAIN\User -MemberName DOMAIN\User2 -Description "My Group"

This example creates a group called "Test Group" in the http://intranet site, with a description of "My Group".  The owner is DOMAIN\User and the first member of the group is DOMAIN\User2.
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Sherif_TalaatConnect With a Mentor Commented:
This script create a PowerShell function called "New-SPGroup" that accept the following parameters:

- SharePoint Web URL
- Group Name
- Group Owner
- Member Name
- Description

In order to use this method, you can simply execute this script to create a new PowerShell called "New-SPGroup" in your runspace, then use it to create the groups you want like the example below:

New-SPGroup -Web http://intranet -GroupName "Test Group" -OwnerName DOMAIN\User -MemberName DOMAIN\User2 -Description "My Group"
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