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Just use the regular methods to unzip/untar the file and install the .prc file to you handheld/emulator. Please note that data saved by versions prior to FreeCoins 0.6.0 cannot be used by FreeCoins 0.6.x, and at the moment there are no plans to support that.
There is evidence that you must delete PalmCoins/FreeCoins from your device before installing FreeCoins. Not doing so will probably lead to Fatal Errors or other unpleasant side effects.
Also note that FreeCoins will not work on PalmOS versions earlier then 3.5. Feel free to read the manual, source documentation and source and then fix this ;-). See this link for more details.