well, as long as the instructions are easy to follow, I'll try to set up on my end.
My guess is the instructions will be something like download Paragon Chat, stick it in the same directory as your I24 client, run it, enter your name and password for Paragon Chat (i.e. your Titan login) so it can make the server connection, then when the City of Heroes client starts up, enter any name and any password, make a character like you were starting the game from scratch, zone in, and away you go.
The FAQ already mentions the double login, and Leandro already mentioned the odd local loopback issue, both of which suggest that Paragon Chat will launch the City of Heroes client for you. To do that, it has to know where the client is. Putting it in the client directory solves that problem. You'll have to log into Paragon Chat with your Titan credentials, because that was already covered elsewhere (see:
http://www.cohtitan.com/forum/index.php/topic,10994.0.html). We know from the FAQ that the name you use to log into the client itself can be anything, and it only is used to track lists of characters/character slots. We know the password is not really used but the client demands one, so your password can be anything (except blank). So you can use any name and any password, but the name itself is something you have to remember because your characters are connected to it. We also know from the FAQ and elsewhere that that Paragon Chat is going to keep a repository of characters persistently so once you make one you can use it again and again to log into Paragon Chat, but that also obviously implies you have to make them: there isn't likely to be a default avatar for people.
Ergo, have I24, download PC, log into PC, log into client, make character, then start walking (no travel powers at initial release).