To hold your guitar sit the large part on your lap so that it's on its side, flat against your body with the strings facing forwards. The thinnest string should be at the bottom and the thickest string should be at the top and the neck and head (that's the long, thin bit) should be pointing out to your left.
Your right hand needs to be able to reach the strings where they go over the hole in the front of the guitar, and your left hand should be able to reach along the neck to near the head. Usually the easiest way to do this is to sit the guitar on your right knee but it doesn't matter, as long as you're comfortable and you can reach the bits you need to.
any problems? e-mail me