The setup window has two tabs, one for the camera settings and the second for the album settings. The camera settings shows on the left the list of currently support cameras. On the right at the top there is an auto-detect button which tries to identify the camera connected to your computer (make sure that the camera is connected properly to the computer and turned on in the image display mode). Below this are the port settings; the currently supported being serial and usb.
Clicking on a camera in the list on the left will display the supported ports which you can then select. If there is only one supported port it will be automatically selected. At the bottom on the right there is a box for setting the exact path in case of a serial port. Please note that usb interface does not need any paths to be set. At the very bottom is where you set the path for a USB MassStorage Camera. This box becomes active once you select USB MassStorage Camera in the camera list. You need to enter here the path where you mount the camera, usually "/mnt/camera".

In the album settings you can choose options as to how Digikam will behave:
Lets you choose the extensions of the files which will be shown in the thumbnailview. Some default values have been setup in the list already
Set the icon-size which you want to be default when showing both local and camera thumbnails. You can choose between Small, Medium, Large and Huge Options here
You can choose what extra information (apart from the filename should be shown in the ThumbnailView). You can choose to show filesize, mimetype, the date file was last modified and the comments for the file
