*Now I have created a Central File, where do I go next?

You do not actually work in the Central File, you work on local copies. Local copies are created by copying or saving the project to a your workstation. When this happens a data link is created to help check and reference data between the local copy and the central file.

*What is the best way to create a local copy and is there any suggestions?

The two main ways are to save as and copying while in windows explorer. Copying with window explorer is my preferred option. First, it takes less time, you do not have to open it and and then re-save. Second, most people open the Central file and forget to save it to their local workstation.

*Is there some best practices for file name to reduce confusion.

Yes, always add in all caps CENTRAL to the end of the central file when naming and as users create there local copies they should remove CENTRAL and add there user name in all caps.