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If your clients site is for example:
http://www.myclient.com then you can place your XOOPS site directly in the root. Depending on your server configuration it can be called htdoc, public_html, etc.
Pro's: shorter url's
If you prefer you can create a folder called XOOPS and place your instalation there.
Pro's: by having an aditional index.html in your root you can further expand the website beyond xoops, for example, have a part in flash and another in xoops.
Con's: This method, beside's having longer url's also adds a further degree on complexity to the site.
If your client will only run XOOPS (which can pretty much handle the vast majority of tasks) then I would advise placing your XOOPS instaltion in the root, that way when sometime types
http://www.myclient.com XOOPS appears.