There are dozens of HOWTOs on installing packages in linux.
Said that, the most common way of installing from source is
1. ./configure
2. make
3. make install
If there is a Makefile present you don't have to run configure though, there's no harm if you do so (provided there is a configure script present). So, in your case you have a Makefile. Just run the command "make" and then login as root (using the "su" command) and run "make install".
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