Alright, so you’ve discussed the basics of the setting, and it’s time to create a character for the newcomer. Whatever you do, do not just open the book to the character creation rules and say, “What do you wan to play.” He doesn’t know, and he’ll feel very stupid for not knowing.
Instead, come up with a few simple character ideas, without rules or anything written down, and present them to the newcomer. This gives him some choice, without overwhelming him. When he’s made his choice, go through the character creation rules, a step at a time, but instead of having him go through the book, ask questions about what he wants his character to be good at, and make the rules decisions for him.
For things that the player has to choose, such as hindrances, edges, feats, or special qualities, don’t give him a the full list, but pick a limited selection of easy to use options to choose from. It’s okay to say that you’re doing this. He will probably understand and approve.
Let him change his character later. This may rub some gamemasters the wrong way, but it’s the only fair way to treat a new player. The last thing you want is for the newcomer to not enjoy his character after a few sessions, especially if it’s because you didn’t give him all the options.
This is the simplest way to give a newcomer a character. Some players, if they’re familiar with RPGs, will scoff at this idea, but it can work well if you’re new player is completely new. Instead of going through character creation with the new player, give him the choice of a set of pre-built characters. Don’t include a name or gender, but you might want to give the pre-built character a one or two line description of their background and personality. Many games come with a standard set of pre-builts specificially for this purpose.
Even if you do go this way, give the player the option to change his character, or create a new one, at a later date.