How do I setup the InternetExplorerDriver so it works

Unpack it and place somewhere you can find it. In my example, I will assume you will place it to C:\Selenium\iexploredriver.exe

Then you have to set it up in the system. Here is the Java code pasted from my Selenium project:

File file = new File("C:/Selenium/iexploredriver.exe");
System.setProperty("webdriver.ie.driver", file.getAbsolutePath());
WebDriver driver = new InternetExplorerDriver();

Basically, you have to set this property before you initialize driver

Reference:

• Driver executable must be set by the webdriver.ie.driver system property