It's actually a lot simpiler than that:
1) Create a new DB in mysql (ubbtest) for example
2) Create a new UBB directory on your server (ubbtest) for example
3) Install UBBT.7 per install instructions using the above info.
Optional steps:
4) Once installed change the cookie prefix to "ubbtest"
5) Title the test board TEST TEST TEST
6) Change the default theme to something other than your live board.
Bingo, test board.
The cookie thing may not be necessary but I did it because I think I had trouble being logged into both my test and live boards at the same time using the same browser.
