Since this MOD is somehow complex, it is recommended to proceed as follows:
1) Disable the board from the ACP (General Admin, Configuration).
2) Make backups of your files and Database.
3) Upload and execute the file install/update_to_latest.php.
4) Remove the file install/update_to_latest.php from your webspace.
4) Install the MOD.
5) Enable the board from the ACP, back online.
It is recommended to use EasyMOD to install this MOD ;-)
Please, be sure to understand the MOD Templace actions.
http://www.phpbb.com/kb/article.php?article_id=39