No special measures necessary, follow the standard installation process. Detailed instructions on installing modules are available in the XOOPS Operations Manual.
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extract the module folder 'contact' into the /modules directory
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Log in as admin and goto Xoops Admin area
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Install the module through Admin -> Modules -> Install Modules
Figure: module administration and install
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Configure the module
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Set module and block permissions via System --> Groups.
To uninstall the module, just click on the red arrow: 
Figure: Uninstalling in module administration