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If you open the terminal and enter the following command:
$ tar -xzvf opera-6.0-20020110.1-static_qt.i386.tar.gz
(The $ represents your command prompt - don't type that)
The tar utility will create a directory by the name opera-6.0-20020110.1-static_qt.i386 (the same as the compressed file name, without the .tar.gz) and it will extract all the files from the .tar.gz file into the newly created folder.
I'm afraid I have no wise words as to whether your home directory is a good place to decompress the file. Give it a try! I'll bet there are INSTALL or README files in there that will give you some direction.
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