8
(keeping backups is always a good idea)
1. move the files and directories to your root directory.
2. download and edit mainfile.php
edit these two lines:
define('XOOPS_ROOT_PATH', '/www/207');
define('XOOPS_URL', 'http://localhost/207');
For the first one you will just have to remove "/xoops-2.0.7/html" from the path it has now. And for the second one just enter your wanted URL. So like
define('XOOPS_URL', 'http://www.shangri-la-la.co.uk');