Install DamageControl into for example /usr/local/damagecontrol. (By unpacking the .tar.gz.)
Create a new user for the DamageControl server, for example damagecontrol.
Create a working directory for DamageControl in for example /var/damagecontrol.
Give damagecontrol write access to the working directory, it does not need write-access to the DamageControl install directory. In fact it is recommended that you do not give it write-access to that directory.
Copy the startup scripts (bin/server and bin/server.rb) to the working directory (/var/damagecontrol). Edit the shell script (server) so that it sets up DAMAGECONTROL_HOME properly. Edit the the server.rb script so that it starts with
$damagecontrol_home = ENV['DAMAGECONTROL_HOME']
Use something like daemontools to run and monitor the DamageControl server.
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