First, install JDK, and add the paths to the PATH environment variable, note that I assume that you need version 6 for MCP, but 4.4+ of MCP should work properly with 7+

First, download the .ZIP file the MCP came in, then extract the files to a folder, then copy the folders "assets", "versions", and "libraries" from the .minecraft folder into the jars folder, then, put the minecraft 1.7.10 server jar in the jars folder.

Run the DECOMPILE.BAT script, note that you MUST be using pure vanilla stuff, no mods (including OptiFine) or Twitch or you get errors.

After about 6 minutes, the code appears in /src/minecraft/ and /src/minecraft_server/, edit the source code and then recompile the code using RECOMPILE.BAT. To test it so it works properly, use STARTSERVER and STARTCLIENT.BAT

For obfuscation, decompile, modify & recompile the code, then hit REOBFUSCATE.BAT and it would detect changed classes & reobfuscate them; they are now ready in the REOBF folder, now ready to be injected into the game.

TLDR:  Extract the files from the ZIP archive, put the assets, versions, and libraries and the 1.7.10 server.jar into the jars folder, decompile it, edit source code, recompile it, test it, reobfuscate it, delete the META-INF from the minecraft.jar or else you get a black screen