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Follow the normal Wordpress Plugin procedures - no special template tampering is required.

1. Upload 'wp-digg-conditional.tar.gz' to your plugins folder.
2. Uncompress the archive, preserving the folder structure.
3. Activate the plug-in through the "Plugins" section of your dashboard.
4. (Optional) Edit the $minDiggs variable in "check-digg-stats.php" to customize the number of Diggs are article needs to receive a badge.