Thanks a lot Harshal !!!
Again few queries for you 
In step 1: As I understood , I need to create a folder in my system for CMS or you tell about CMS placed in server?
In Step 3 : userid and password : Are you telling about Learning Portal userid/password r8 ?
From Step 3 and 5; Do I've to deal with below set of user ids:
1.SAP R/3
2.ESS/Learning Portal
3.New user id of AE to ECC access : no idea : when I open AE it never asks for a separate user id/ password: Currently I am opening AE via a windows batch file named las.bat . AE opens but not sure whether every LSO user opens like this or not 
Step 6-9 : I have confidence, can do that 
Step 10 No external LMS: so it's not in scope. Do you mean virtual learning in step 10?
Regards,
Niladri