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Lee,
In order to install the XOOPS Chat you need to get the Chat folder into the "modules" directory on your webserver.
Most people use an FTP client to add and remove folders to the site, I recommend
Smart FTP. You'll need your FTP login information which sould have been provided from your host.
Another way of doing it is through a control panel that your host provides for its servers. These are usually web based and include a file manager to add and remove files and directories. One popular program is
cPanel.
Hope this helps.
- Robert