Click the Zotero button at the bottom of your browser to open your library. At the top left is a folder button with a green plus sign. Click this to create a new "collection."
Create collections to organize your references. Collections are like file folders on your computer, but a reference can be in more than one collection at a time. In other words, a book on the Civil War could be filed in your "Civil War" collection, your "Georgia History" collection and your "19th Century America" collection without having to make three copies of the reference.
Zotero offers word processing plugins for Word and OpenOffice. The plugin adds a Zotero toolbar to your word processor that allows you to add citations to your document while you write.
To add a citation, click the first button ("Insert Citation") on the toolbar. Search for the reference you want to cite and press Enter. Zotero will add the citation at your cursor.
At the end of your paper, click the third button ("Insert Bibliography"). Your bibliography will appear, and new citations will be added automatically. Change bibliographic styles with the last button on the toolbar ("Set Doc Prefs").
It's easy to create a bibliography from your Zotero library.
Select the references or collections you want to include. Hold the control key and click to select multiple items. Right-click one of the selected items and choose Create Bibliography. Choose the bibliographic style you want, and select the output format: Save as RTF or HTML, copy to clipboard or print. (The RTF file format is compatible with all word processors.)
Or you can just drag and drop references from Zotero into your document! They'll turn into fully formatted citations. This works with any word processor including Google Docs. Change the default style under Preferences on the "gear" menu.
This video shows you how to create bibliographies using Zotero and Word.