Copy the directory and all files from the archive to the directory /wp-content/plugins/. The paths of the files must be:

/wp-content/plugins/feed-reading-blogroll/

After that, go to your admin-dashboard and activate the plugin.

Furthermore, the plugin will create a JavaScript file in your WordPress content-directory (normally, this is /wp-content/). Therefore, this directory must be writable (chmod 777) at the moment, the Javascript-file is created for the first time. After that, the content-directory does not need to be writable as far as this plugin is concerned. I would recommend the following procedure:

• Set /wp-content/ to chmod 777, e.g. by using your ftp-client.
• Go to the plugin’s option-page. This will let the plugin create the JavaScript-file.
• Go back to your ftp-client and go to /wp-content/. You should find a file called feedreading_blogroll.js in it. Perfect! The plugin will now be able to overwrite this file, even if /wp-content/ is no longer writable, so …
• … Set /wp-content/ back to chmod 755.