Dress the person! To use clothes click on the icon at the bottom and a drag-able object will appear at the top. Drag it into the bin if you don't need it. There are three items - shirts, pants, and shoes (accessories coming soon). After clicking on one item, you can click on the yellow circle above the non-drag-able item and then use the arrow keys to change the item (eg. the pants can become pants with a belt, a skirt, and jeans). There are little 'cheats' you can use to unlock extra stuff!
CHEATS: PLEASE ONLY READ IF YOU WANT TO KNOW THEM: When selecting boy or girl you can type in elephant or alien. If you click on the bin, you can change it's colour. Press 'u' for underpants, and press 'i' to turn the underpants upside down. Press 'b' for a new backdrop. There are several backdrops.