Ok. When you're ready to sign-up, you click one of the two names at top (separated from the rest of the order). Clicking on one takes you to the 360Elite4Free or 3604Free website, with that individual's referral number listed on the frontpage. You'll then sign-up (pretty generic at this point) following the set-by-step instructions - don't worry, no spam. You'll pick a prize during this time, along with chosing referral or points system. Once that's done, you'll have to pick a offer to complete in order to 'go green'. Going green may take a bit, so come back here and post:
A. Name Of Person Signed Up Under
B. Your Email Used When Signing Up
C. The Offer You Completed
D. Greened or Pending
Once that offer is completed (it'll show you on your progress page) you'll pm Red with your referral link, and I'd pm the person you signed under to get them to tell Red you're green. That's pretty much that on the sign up. (I hope it wasn't more info than you needed)
As for getting referrals, you have a few options besides friends/family signing up under you. Pay money for what you need (not free, I know), use a referral swapping site (though those don't seem to do well for xbox at the moment, that may change), or swap referrals with others here (always someone wanting to swap).