Peer guardian is easy. Install it. Make sure it is running in the sys tray and update it.

You can get the block lists : http://methlabs.org/sync/

I believe you right click the program and there is an option to update the blocklist. Choose that and then load the file that you downloaded from the site.

Then restart it, and it should be up-to-date.

Though I think the newest release has an autoupdating feature.