Assembling was a piece of cake. I had already running Raspbian on my Rpi using it mostly headless (via ssh), connected wirelessly to my LAN. When I powered Rpi on, the display went all white – so far so good. Time to install some software in order display to be recognised. Found a nice site with a wiki http://www.waveshare.com/wiki/5inch_HDMI_LCD
They are talking about 5″ display, but I decided to give it a try and see what happens with my 3.5″.
#1. Downloaded the driver while ssh-ed to my Rpi using wget as root wget http://www.waveshare.com/w/upload/3/3d/LCD-show-160811.tar.gz #2. Extracted the files from the archive tar xzvf /boot/LCD-show-YYMMDD.tar.gz #3. Added couple of lines to /boot/config.txt file max_usb_current=1 hdmi_group=2 hdmi_mode=87 hdmi_cvt 800 480 60 6 0 0 0 #3. Ran install cd LCD-show/ ./LCD35-show #4. Rebooted