To set up iCloud follow these steps:
- tap the Settings icon, From the Home screen,
- Tap on iCloud icon
- Tap Account to register or create an account.
- Set an Apple ID and password accordingly.
- Decide your iCloud storage plan.
After getting registered you automatically get 5GB free storage in icloud.
- Now you can Tap the Done button and return to the settings.
- Set your iCloud Mail account options.
- Tap any button to turn on/off iCloud synchronization regarding that information.
- Press the Home button to exit Settings.
During Step 8 you turn on and find my iPhone option, via which you can track down your iPhone from the website. From that you can play a particular sound to help you in finding it. If your iPhone is stolen or you have lost it, you can even tenuously lock or completely remove it!
And if you install the iCloud Control Panel for Windows, your computer can also join in the fun with iTunes. Though, your system can only sync Calendars with outlook, Contacts and Mail, Bookmarks with Internet Explorer and finally the Photo Stream with the folder you mention there for pictures.