You just need to unzip in into your Civilization III directory. It will unzip as a folder called BritIsles. Open this folder and double click on the installbritisles.bat file. This will back up your regular files and install the customized ones for the mod. Start up a new game and it will be using the British Isles modifications. Note that you can't play a regular game while the mod is installed (won't be able to start up one of your old saved games, for instance).
When you want to uninstall the mod just go back into the BritIsles folder and double click on the uninstallbritisles.bat file. That will remove all of the stuff BritIsles needed and restore your original files.
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