MERVbot can be extracted to any folder. I'd suggest Continuum\MERVbot, just for convenience, but it can be anywhere. Read the guide and set up mervbot.ini, operators.txt, and spawns.txt before starting the bot. Also, add the bot to vip.txt and/or sysop.txt. Otherwise, if your zone is set to only allow Continuum clients to connect (as it should be), the bot won't be able to connect, and you'll get flooded with "Illegal connection" or "Unknown packet type" messages.