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The Simple Tagging Plugin can be installed in 4 easy steps:

1. Decompress the downloaded .zip archive and put the files into your plugins directory (/wp-content/plugins/) or into a sub directory of the plugins directory (recommended).
2. Enable the plugin in the WordPress Plugins admin page.
3. Go to Wordpress Admin > Tags > Tag Options, adjust the options and save.
4. Go to Wordpress Admin > Options > Permalinks and press the button to update the permalink structure. (very important)