The setup involves a Keenetic router with a 2TB USB drive, functioning as a NAS for network storage. It utilizes three Docker containers: Transmission with Flood UI for torrent management, Jellyfin as a media server, and a Telegram bot for adding torrents and receiving notifications. The process allows users to send .torrent files via Telegram, which are then downloaded and made available in Jellyfin for viewing on various devices. The configuration requires Docker, a NAS or router with SMB share, and a Telegram account. The system is designed to maintain data integrity through OS reinstalls, and it can be set up quickly using a provided repository and configuration files.