Setup GNS3 using Setup Wizard

First is to create Directory Structures folders for 'Images', "Other Work Area', "router initial configurations and etc...", "Dynamips Work Area and etc...", "Project Directory and etc...", Wireshark Capture". Created what is best for you. By creating this, there will not be messy settings and the process will be easier.

Creating Directory Structures folder

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After creating the directory structure, launched the GNS3.

Setup Wizard

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Select Step 1
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Browse to the path where the Execute path to Dynamips is stored e.g. C:\Program Files\GNS3\dynamips.exe
Browse to the path where the Working directory for Dynamips is stored e.g. C:\GNS\project_dir

Dynamips Options

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The ghost IOS option can significantly reduce the amount of real host RAM needed for labs with multiple routers running the same IOS image. With this feature, instead of each virtual router storing an identical copy of IOS in its virtual RAM, the host will allocate one shared region of memory that they will all utilize. So for example, if you are running 10 routers all with the same IOS image, and that image is 60 MB in size you will save 9*60 = 540 MB of real RAM when running your lab. Ghost IOS is enabled by default in GNS3.
Enabling JIT sharing this feature technically allows VMs to share JIT blocks, instead of recompiling multiple times in a non-shared way.
Enable sparse memory support allows GNS3 to control memory handling hence memory will be utilized as need on each running devices and unused memory will be swapped to hard-disk. If you running on Windows 64bit with more than 4GB ram, turning this off could be a good options.
For further explaination, refer to this website http://www.gns3.net/gns3-memory-cpu-usage/

Dynamips Options - Test Settings

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Click Test Settings

Allow access for dynamips

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Make sure the dynamips is allow in the Windows Firewall rules. Click Allow access.
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On Executable path, browse the path where the dynamips.exe is stored. For Working directory, create a subfolder temp in folder. After that, click on "Test Settings" and you should see a message, that Dynamips 0.2.8-RC3 was successful started. For Hypervisor Manager leave the default settings. Click Apply and go to tab Capture.
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The default Memory usage limit per hypervisor is 512 MiB, set it to 2048 MiB. The GNS3 is run on hypervisors internally, which means it does not required to start the process manually. This Hypervisor manager helps to address the memory usage limit per process problem when running many IOS instances on a single hypervisor. In most cases, 2048 MiB is ideally enough to start at least 4 - 8 routers.

GNS3 General Preferences

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Browse to the path where the Project Directory is stored e.g. C:\GNS\project_dir
Browse to the path where the OS Image is stored e.g. C:\GNS3\images
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The Project directory and the OS image path had been selected.

Terminal Settings

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Putty is included with the GNS3 installation, but SecureCRT, Telnet and Teraterm are supported as well.

Capture Preferences

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In the previous installation and setup, Wireshark 1.6 is installed.
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If this option is not selected, the default will be Wireshark Live Pip Traffic Capture (experimental) (Windows).
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Use Wireshark Live Traffic Capture (Windows) for best results.

Qemu Preferences

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Browse to the path where the Qemuwrapper is stored e.g. C:\Program Files\GNS\Qemuwrapper.exe
Browse to the path where the Working directory is stored e.g. C:\GNS3\workarea
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VirtualBox Preferences

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Browse to the path where the vboxwrapper.exe is stored e.g. C:\Program Files\GNS\vboxwrapper.exe
Browse to the path where the Working directory is stored e.g. C:\GNS3\workarea
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The Virtualbox version 4.2 application need to be installed which will be covered on the next section. If the GNS3 is running on version 0.8.3.1, only Virtualbox 4.2 is supported for the VBoxwrapper. If you are planning to used or installed Virtualbox 4.1, revert to download and install GNS 0.8.2.

General Preference

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Click Apply and OK.

Setup Wizard

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IOS images and hypervisors Preferences

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This is just an overview.
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Browse to the path where the Working directory is stored e.g. C:\GNS\temp
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Click Save. The Hypervisor will appeared with the Host UDP port number. The more you click Save, the more Hypervisor hosts will be assigned. Click Save at least 4 times to create 4 Hypervisor Hosts. Four instances will appeared and these settings optimal for more at least Pentium 4 cpu processors, which support Hyper-Threading (HT).
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The Hypervisor Host can be deleted by selecting the Host:Port and click Delete.

Installing GNS3 0.8.3.1 on a Windows 7 64-bit platform

You need to download the latest GNS3 from GNS3 website. Download the "all-in-one" which includes all software required to successfully run GNS3 excluding the IOS images.
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When launching the setup, most likely a windows pop-up will give display a warning "Unknown Publisher´, Select Yes or Run to proceed the installation.

GNS3 0.8.3.1 (All-in-1)

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Click Next >
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Click "I Agree" to proceed.
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Click Next > to proceed.
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WinPCap (Windows Packet Capture) – a program, that catches, count and transmit the network packets.
Dynamips – is an emulator program. Dynamips runs on Linux , Mac OS or Windows and can emulate the hardware of the Cisco series routing platforms by directly booting an actual Cisco IOS software image into the emulator.
QEMU - is an open source, fully emulates the PC. In addition to emulating a processor, QEMU can emulate all necessary subsystems, such as network adapters, and video adapters. It can also emulate the more advanced things, such as symmetric multiprocessing systems (up to 255 processors) and other processor architectures such as ARM or PowerPC.
Note: Dynamips 0.2.8 RC4 is under testing for TCP/IP v6
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Click Install and use the default Destination Folder.

If WinPcap existed in your current Windows

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If you have already installed WinPcap on the current machine, click Cancel. Make sure that the current version that is instaleld on your machine is WinPcap 4.1.2.

WinPcap setup

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A New installation screen will open for the WinPcap installation, proceed with this software installation. This installation is required; without WinPcap GNS3 will not function.
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Click Next > to proceed
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Click "I Agree".
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Click Install and select the default to automatically start the WinPcap driver at boot time.
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Click Finish

Cancel the Wireshark Setup as it is still using 32-bit

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Click Cancel as the Wireshark is running on 32-bit.
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Click Next >
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Click Finish and Start GNS3 configuration.

Installing Wireshark on Windows 7 64-bit

Download the Wireshark 64-bit from Wireshark.com website and run the Wireshark-win64-1.X.X.exe. Click Yes when the prompted "Do you want to allow programs to make changes to this computer?"
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Click Next >
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Click I Agree
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Click Next >
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Click Next >
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Click Next >
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If there is previous WinPcap installed, it will be automatically unchecked. WinPcap is used for packet capturing. Click Install.

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Click Next
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Click Finish

Installing GNS3 0.8.3.1 on a Windows 7 32-bit platform

You need to download the latest GNS3 from GNS3 website. Download the "all-in-one " Windows 32bit. This includes all software required to successfully run GNS3 excluding the IOS images.
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When launching the setup, most likely a windows pop-up will give display a warning "Unknown Publisher´, Select Yes or Run to proceed the installation.

GNS3 0.8.3.1 (All-in-1) Standalone 32-bit Setup

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Click Next >
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Click "I Agree" to proceed.
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Click Next > to proceed.
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WinPCap (Windows Packet Capture) – a program, that catches, count and transmit the network packets.
Dynamips – is an emulator program. Dynamips runs on Linux , Mac OS or Windows and can emulate the hardware of the Cisco series routing platforms by directly booting an actual Cisco IOS software image into the emulator.
QEMU - is an open source, fully emulates the PC. In addition to emulating a processor, QEMU can emulate all necessary subsystems, such as network adapters, and video adapters. It can also emulate the more advanced things, such as symmetric multiprocessing systems (up to 255 processors) and other processor architectures such as ARM or PowerPC.
Note: Dynamips 0.2.8 RC4 is under testing for TCP/IP v6
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Click Install and use the default Destination Folder.

If WinPcap existed in your current Windows

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If you have already installed WinPcap on the current machine, click Cancel. Make sure that the current version that is instaleld on your machine is WinPcap 4.1.2.

WinPcap setup

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A New installation screen will open for the WinPcap installation, proceed with this software installation. This installation is required; without WinPcap GNS3 will not function.
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Click Next > to proceed
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Click "I Agree".
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Click Install and select the default to automatically start the WinPcap driver at boot time.
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Click Finish

Wireshark Setup

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Click Next > to install Wireshark. This tool is used for packet sniffing. It is often used to sniff packet loss.
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Click "I Agree".
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Click Next > to select the default components to install.
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Click Next > to create the shortcuts. The Desktop Icon can be checked if you want to allow it to be shown on the desktop.
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Click Next > to install and use the default Destination Folder
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Click Install to install. It will detected if WinPcap is installed as it required this components to capture live network data.
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Click Next >
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Click Finish
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Click Next >
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Click Finish and Start GNS3 configuration.