You want to start small and work your way up?
-Make a matrix
-make lots of boxes to resemble a city
-import a few car models and place them infront of a few of the buildings.
-create a character cube
-lock camera to be 3rd person view
-Give your character controls (simple stuff: forward,back,left,right)
Going up to a harder level..:
-Make your cars be able to move on their own. I would say around a block infinite times
-Add in some sounds and lock it to the cars so u only here the sounds when they drive by.
-Apply textures to your building to give it the city look.
-Switch out your character to a real .X character with animations to follow your contols.
-Texture the matrix to match city streets.
-Import a few human models that stand on the side walks and for now do nothing more
Now that isnt the hardest thing to acomplish right there. Will take some time for you to get it all covered but i think you might be able to handle it. The menu comes last so dont make one till your done with your game.
good luck..