Just install/extract the archive to up one level of your cstrike folder.
Examples:
C:\SIERRA\Half-Life for Half-Life mod version of CS
or
C:\SIERRA\Counter-Strike for retail version of CS
or
C:\Program Files\Steam\SteamApps\user@company.com\counter-strike for Steam version
For Steam users:
Before install the bot, go to create a game in CS. After the game is created, quit it. This will create a file (mp.dll) which is needed by the bot to run.
After you installed the bot, go to your cstrike folder and set the liblist.gam to "Read-Only" mode. You can do this by right-click on liblist.gam -> choose "Properties" from the menu -> tick the "Read-Only" option on "General" tab.
Notes:
1. If you are using the win32 installer to install the bot, you have to type in the path to install (don't press the Browse button on the installer to choose the path else the bot will installed to C:\Program Files\Steam\SteamApps\user@company.com\counter-strike\Half-Life)
2. To make sure you installed to the correct place, go to your
cstrike folder and see if there is a
ivpbot folder. If it's exist, then you installed it correctly
Another thread that is related with the installation of the IvPBot on Steam:
http://forums.bots-united.com/showthread.php?t=747
New waypoints for CS 1.6:
http://forums.bots-united.com/showthread.php?t=487 by CoCoNUT
http://forums.bots-united.com/showthread.php?t=726 by Obi_Wan