unzip the zip.
The TGZ is the SOURCE CODE. (not what you wnat I don't think)
you want the ZIP from http://my.svgalib.org/kindle/myts-8.zip
Now, dump that (unzipped) on the root of the drive. (on the FAT space, not the ext3 linux bit) /mnt/us/"here"
Install (or run) launchpad (remember to SHIFT SHIFT SPACE to reload the shortcuts database first) http://www.mobileread.com/forums/showthread.php?t=97636
optionally add a larger font once you have it running from this thread.
I'm doing to this right now. (hence the walk-through) enjoy