Feel free to develop and expand upon it. I'd love to hear what you do with it. Also, if you'd like to contribute your changes back to the project, please download and use the python patch creation script.
1. Upload the contents of the zipfile to your server in its own folder.
2. Open install.php in your browser, fill in each of the fields, and click submit.
3. Congratulations, your installation is complete. Login to your new chatroom!
If it still doesn't work after submitting the form in install.php, check that the config.php was created. If config.php doesn't exist, make sure your webserver has write access to chatr's folder.
This chat is designed to be simple above all else and not to hammer your web server too hard. Therefore don't expect it to be irc or AIM or something more than what it is.