Installation:

Just run the installation by doubleclicking on its icons and follow the
instructions given.

About FLAC:

FLAC stands for Free Lossless Audio Codec, an audio format similar to MP3, but
lossless, meaning that audio is compressed in FLAC without any loss in quality. 
This is similar to how Zip works, except with FLAC you will get much better
compression because it is designed specifically for audio, and you can play back
compressed FLAC files in your favorite player (or your car or home stereo, see
supported devices) just like you would an MP3 file.