You're supposed to set up a bitcoind daemon on a server. Then, you set up a bitcoin.conf file (location depends on your OS) where you have the lines:
rpcuser=someusernamehere
rpcpassword=somepasswordhere
rpcport=8332
rpcport defaults to 8332 so you can leave it out. You'd run the bitcoind with flag daemon. The other two lines give you the user and pass. Then in that array you'd fill in the selected user/pass, the IP of the server and 8332 as the port.
see here: https://en.bitcoin.it/wiki/Running_Bitcoin#Bitcoin.conf_Configuration_File