A. You don't install it. This isn't software, just a piece of paper licensing you to use SQL Server in this manner. Just up the number of SQL Server connections via sp_configure and licenses via control panel/license manager yourself.
It covers any number of INTERNET users connecting to a SQL 6.5 machine. If your users are connecting via an INTRAnet then the individual users require CAL's and the internet connector license does not apply.
For SQL 7.0 the same is true except that an internet connector license is required PER CPU on the server. So for a quad-SMP box you would require 4 licenses. (Intranet users with CAL's are not affected)