Quickstart version for users:

-1) If you don't have libevent, install it.  Source is at
    http://www.monkey.org/~provos/libevent/ .
0) Download the absolute newest version. No, really.
  http://tor.eff.org/dist/
1) tar xvf it, and then cd into the directory.
2) ./configure
3) make
4) make install (as root if necessary)
5) tor (if it doesn't work, give it the whole path or fix your path)
  You don't need to run this as root, and you probably shouldn't.
  (If you're having problems, try running it with "-l info" to get
   more details.)
6) point your browser to socks4 or socks5 proxy at localhost port
  9050. In mozilla, this is in edit|preferences|advanced|proxies. This
  allows you to test to make sure tor is installed correctly.
  (If you have a personal firewall, be sure to allow local connections
   to port 9050.)
  (If your firewall blocks outgoing connections, punch a hole so it
   can connect to TCP *:9001-9004 and *:9031-9033)
  (If you're using Safari as your browser, keep in mind that OS X before
   10.3 claims to support socks but does not. You must do step 8.)
7) make sure you've set it up correctly: go to
  http://www.junkbusters.com/cgi-bin/privacy and see what IP it says
  you're coming from. If it works, you should probably go on to step 8,
  to get better privacy.

8) Optionally, install privoxy (www.privoxy.org), and add the line
  "forward-socks4a / localhost:9050 ." (without the quotes -- don't forget
  the dot) to its config file. Then change your mozilla to http proxy
  at localhost port 8118 (and no socks proxy). You should also set your
  SSL proxy to the same thing, to hide your https traffic. Using privoxy
  will give you good html scrubbing as well.
  (See doc/CLIENTS for why direct socks gives you less anonymity.)

*****If this works for you, you can stop reading here******

If you got the source from cvs:

  Run "./autogen.sh", which will run the various auto* programs and then
  run ./configure for you. From there, start at step 3 in the quickstart
  list above.

If the quickstart doesn't work for you:

  Starting with Tor 0.1.0.0, Tor uses libevent for its asynchronous
  networking core.  If you don't have libevent, you'll need to install it.
  You can get it at http://www.monkey.org/~provos/libevent/.

  If you have problems finding libraries, try
    CPPFLAGS="-I/usr/local/include" LDFLAGS="-L/usr/local/lib" \
    ./configure
  rather than simply ./configure.

  If you have mysterious autoconf failures while linking openssl,
  consider setting your LD_LIBRARY_PATH to the openssl lib directory.
  For example, "setenv LD_LIBRARY_PATH /usr/athena/lib".

  Check out the list archives at http://archives.seul.org/or/dev/ and see
  if somebody else has reported your problem. If not, please subscribe
  and let us know what you did to fix it, or give us the details and
  we'll see what we can do.