Step 1:
Check the Proxy settings of Paros from Tools>Options
Local proxy is the setting which you will configure on the web-browser. By default, Paros uses localhost as proxy address and 8080 as the port.
Under Connection settings you configure the address and port number for your corporate/ISP proxy. In case you are not behind a proxy server, leave it remain unchecked (default setting). Additionally, you can bypass certain addresses and configure proxy authentication details also.
Step 2:
Next, open the proxy settings configuration box of your web browser and configure proxy server address and port number i.e. Paros settings.
Step 3:
Next, open the web-site you want to assess.
And access (crawl) some of the URLs manually, so that Paros get a seed to start crawling.
Step 4:
Once seed has been generated in Paros, highlight the web-site, right-click and select Spider.
This will start the auto crawling function.
Step 5:
Now select Analyze>Scan policy from the top-menu.
And select the Vulnerabilities you want to scan for. Notice, that it has almost all the OWASP top 10 vulnerabilities.
Step 6:
Once scan policy is defined, you can start the scan for one or more (all) web-sites visible under Sites pane.
Once the scan process is completed, you can view the results with test data in Alerts window (Bottom).
Step 7:
Now, you can generate a detailed report on findings from Report> Last Scan Report
Assessment report will have Vulnerability description, exact instances (URL & affected parameters), recommended solution and relevant references.
I hope the post was informative for you and within a short time span you will also be able to perform your first Automated Web-Application vulnerability scan.