thanks so much for the support! this is how i do it:
download,
copy the zip to the FTP (/var/www/html)
extract it
Copy the folder inside UPLOAD
Paste it in /var/www/html
Go to the ACP, install addon
and click the xml.
The set username color. Basically shows colored usernames everywhere there's a username for whatever color you have set on the usergroup. Using it on my site currently.