You should have one hpd-config.xml file which describes your entire HPD configuration. Once you run the setup on this hpd-config.xml file the hpd.properties files will be generated for each cache manager, etc. as needed and you will copy this file from your setup directory to each of the processes.
The information in the HPD Install and Config guide should have all the information about prompts you should receive when doing an install. If there are specific items you have questions about please let us know.
