Once you sit down (something that the Avatar can't even do properly), the gypsy will ask you whether you are prepared, so that if you want to continue exploring the place, you can do so. Once you tell her that you are prepared, character creation will begin.
The gypsy will ask you seven questions each with two answers to choose from, and it does not matter what you choose. Your last choice will determine your class in the game, for example if your last choice is Honesty, you will start off as a Mage. There are places on the net which will tell you the outcome of each virtue and class:
The class you end up with affects several factors (mentioned in the pages I pointed out above), including your:
If you want to have a look at the questions that can come out, I have several screenshots with the questions:
After character creation, the gypsy will tell you what class you will start as. A moongate will appear in the circle of stones, and the gypsy will tell you to seek out Lord British once you go through. Go out of the gypsy's wagon and follow the path right to the moongate.
A gazer will appear and attack you. The voice will tell you that it is a magical creature from Britannia and that its powers are weak on Earth. Don't forget it can't harm you, so just kill it and go through the moongate to Britannia.