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Before installing you will need a PayPal account that can support IPN.
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Currently this means either a Premium or Business Account.
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1. Copy either the entire lm_paypal directory or just
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the *.module, *.install, *.info and *.js files into your drupal/modules
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directory. For just one site in a multi-site setup copy into
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drupal/sites/www.mysite.com/modules
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2. Enable the modules in admin/modules
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3. Under administer>settings configure, as appropriate, each module.
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4. Under administer>help read the help pages for each module.
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