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To add a module that you have downloaded, unpack it locally and upload to your XOOPS site. Modules are placed in the /modules directory of your site tree.
Log in as an administrator and go to Sytem>>Modules.
On top you will see your installed modules. On the bottom you will find the modules youdon't have installed, but are uploaded. Click install on the one you like, and your done. This is where yu set the weight of your modules (where they appear in the main menu), so you can number them accordingly, or hide them here. You can also rename them from their default value.
Now the module (name) will show up on the left hand list. Configure your module how ever you want, be that adding content, creating items or whatever the module calls for.
As an admin and registered user, your module will be visible by default. You will need to go into System>Groups>Anonymous and check the box you want Anonymous users to be able to view.
Most modules contin blocks. Block are just snippits from your module, like recent news, comments, or what have you. You can configure which ones are displayed in the blocks administration pages. Just don't get too carried away.
As for settin what module you would like displayed on your home page, you can either set up blocks and order them however you want, you you can fo to Preferences>>general settings and select an entire module to use use as your home page. The choice is yours.
Good Luck
Some helpful links
http://dev.xoops.org/ (Module repository)
http://docs.xoops.org/ (Step by step intructions on using XOOPS)