On page 55 of this book in the chapter on Style and Navigation, it mentions that we are going to be working with three projects.

It then lists...
ThePhile
Controls
PhilePageBase

If these are the 'projects' I am to create, what do I set the 'Assembly Name' and 'Default Namespace Options' to in each projects 'Properties' window? When the book asked me to create the 'Core' project back on page 33, it told me exactly what to set these values too.

Furthermore, I just tried to create the 'Project' called 'ThePhile' and I was asked what type of 'Project' it is. Is this a class library too. It says in the book that it is to hold the site's homepage and stylesheets. I tried to make this a 'Web Application' but it would not let me create this in my site's root directory. What type of project is this and the other two?

I do wish this book did not rely quite so much assumed knowledge. At a mere 500+ pages, I think they could have added a few paragraphs here and there to flesh out these paragraphs.

Have you tried downloading the sample code? It's much easier than trying to create the whole site from scratch. All the settings are already in place.