You extract the downloaded 7z file, and place the included .dll file in Data\obse\plugins\ folder.

If the folder is not present, you create one. Done!:)

As the readme says, the OSR dll must go in the Data\OBSE\Plugins folder. If you don't have such a folder, manually create it. This should happen naturally from unzipping the OSR zip in the main game directory. If problems occur then there may be relevant information in obse.log (if OBSE did not load OSR for some reason) or sr_Oblivion_Stutter_Remover.log (if OSR ran in to trouble somehow), both of which get created in your main game directory.

New thread: http://www.gamesas.com/index.php?/topic/1140777-relz-oblivion-stutter-remover/

Don't post to this thread anymore.