You have 2 options for running this little app 

- Right from the uncompressed directory 
- Or just execute as root:

  python setup.py install

  Make sure Python development packages are installed or this install method 
  will fail. But without it you still can run this app from its directory.

  This way Pebrot modules should be installed to Python's site-packages dir, 
  documentation to /usr/share/doc (may vary between distros) and pebrot 
  executable to /usr/bin (also varies).

If you want to create a binary package (.deb, .rpm ...) just execute this:

  python setup.py bdist

  Then a binary .tgz package will be created under dist/ directory. So just use
  alien to convert to your favourite format. Check alien's manual for specifying
  package's description.