Dig out your area with a shovel. Check with the block manufacturer as to how far they want the first row of blocks below the surface of the ground, then add that measurement to your overall depth for digging the trench. You need six to eight inches for gravel, two to four inches for sand and then the depth of the first layer of blocks.
Fill the foundation trench with gravel and sand and pack it in place with the tamper. Shovel in a few inches of gravel and tamp it down, then tamp another layer on top of the first, working your way up until you are finished. Repeat the process for the sand on top of the gravel to provide a compacted base for your wall.
Install your first row of blocks on top of the gravel and sand across the length of your installation area. Tap them into place with a rubber mallet and use the level to ensure you are making the first row completely level. Adjust the pieces as necessary with more or less sand, but ensure each piece is tamped into place with the mallet.
Lay down your second row on top of the first row, using the built-in channels that the blocks are designed with to lock the pieces together. Stagger the second row so that the centers of the blocks are on top of the joints between blocks below, then repeat the first row in the third row, the second row in the fourth row and so on up through your wall.
Cut down the block end caps with a stone-cutting machine and install them on the corners. Stick them in place with some of the block adhesive that was recommended to you by the block manufacturer. Use the glue on all of the corner pieces as you work your way up the wall.