1) The document discusses converting a Photoshop website template into a Drupal theme using a base theme approach. It outlines downloading and installing the Fusion base theme, creating a subtheme, and mapping the PSD regions to Drupal theme regions.
2) It provides steps for setting up the Drupal installation, enabling the subtheme, preparing the PSD file, and removing the default Drupal content using Views.
3) The goal is to build a fully responsive Drupal theme that implements the design of the PSD template while taking advantage of the extensibility of the base theme and Drupal.