Thats easy Nash.
There are no bids at this time. You enter $25.00 as your max. bid, and the opening bid will be $9.99
Now, if no one else bids, you get it for $9.99 when the auction ends. You should check it periodically, but I just enter the most I'm willing to pay, and check once in a while.
Now, if say, I come and want the item, I'll have to bid at leat $10.50. I'll place my bid, but you have a max. bid in at $25.00, so the computer will come in auto and enter a bid for you at $11.00. If the auction ends here, you pay $11.00
The comuter will keep bidding for you to beat other bidders until someone bids $25.01. That's above you're max, and you're out unless you come in and bid again.
Once the auction is over, check the shipping costs (Actually, I do this before I bid...don't get killed on shipping. Ask the weight of the item, how it's shipped and where from (ZIP code). Then go to USPS.com or wherever and calculate the shipping to make sure the seller's not robbing you.
Once you've got a shipping rate, click the "PAY NOW WITH PAYPAL" button on the auction page, enbter the info, and you're all set.