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firstly, you have to upload the style folders into images/[stylename]/. Then you need to go into the acp and upload the xml by going to Styles & Templates->Download/Upload Styles->Import Style XML File. Browse to your xml file locally, then click Import. If it worked, your style should now show up in the list in Styles & Templates-> Style Manager.

If you want the style as the default style, go to vBulletin Options->Style & Language Settings->Default Style then select the newly installed style and your done.

If your theme is working but the images are not showing up, then go to Styles & Templates->Style Manager->[Style]. Scroll down and find the section with the paths to each folder. Each one should be something like images/[stylename]/[foldername]. Make sure each one is pointing to your style folder, not just /images/[foldername].