if you are gonna install it with your regular account, just create a folder anywhere you want in your home and install it there... i created a folder called "programs" and every program i install as a regular user has it's own folder in there... so my openoffice is in ~/programs/openoffice and my limewire is in ~/programs/limewire, for example...
if you're gonna install it as root, i'd suggest sticking with whatever defaults it comes with if you can...
the "best practice" locations for installing system-wide stuff kinda vary between distros...
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