Of course my instructions don't ask to create database.
They say to delete test installation but NOT database, simply because the name of that database is what the config files use to connect.
Read your config files, therein you will find the name of the database, now create a database with exact same name.
Once created, you select it, it should show import as an option in the top bar.
By the way, what version of XAMPP are you using?
If you installed the latest 1.7.2, then you have PHP 5.3, Zen Cart v1.3.8a and older do not work with that one, read the announcements.
You have to install previous one 1.7.1.
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