None of this is brain surgery, but do read the instructions all the
way through before beginning.
If possible, remove staircase from house, or install runner
before installing staircase.
Lay the runner on the staircase, centering between wall and edge
of balusters, or whatever looks balanced. Using an awl or other
sharp pointed tool, make pilot holes in the tread, at both edges of
the runner, way back where the tread meets the riser. (See Figure A)
A cardboard jig, cut to fit the stair width, and marked for the
holes is helpful.

Remove the runner, and using a small drill bit, 1/32" or so,
drill into the tread. If your staircase is solid wood, drill in
about ½", if the space under the treads is open, just go all
the way through. Check to make sure the holes will accommodate the
rod holders' stems.
Insert the rod holders into the holes you drilled. If the
staircase is solid wood, first trim the "stems" to
3/8" then put a drop of super glue on the stem and insert into
hole. If the staircase is open underneath, simply bending the stem
to the side will secure it in the hole. The eye should be flush with
the tread, and at right angles to the riser.
Make a ¼" casing at the top end of the runner. This can be
done by stitching with matching or "invisible" thread, or
by gluing along the cut edge with tacky glue. If gluing, put one of
the rods inside the casing before gluing, so it is sure to fit.
Starting at the top of the staircase, slide the rod through the
casing, insert one end of the rod through the eye of the holder,
then slide the rod sideways so it will go through the eye on the
other side.
Work down the staircase, smoothing the runner over the next tread
and inserting rods as you go. At the bottom, the runner can end just
under the lip of the last tread, or at the base of the last riser,
next to the floor. (See Figure B) Allow about 3/8" for the
casing, and either run a line of stitching or a bead of glue (let
dry) and then cut on the waste side of the line.
Stitch or glue the runner around the last rod, and insert as you
did the top one.
The leftover runner can be made into a throw rug by stitching or
gluing ¼" from the edges, and raveling the ends to make fringe.
The pre-stitched end will have to be trimmed off, of course. You did
it! Congratulations, good job.