You dont install anything. All you need is a broadband connection. Then you would go to the live screen and create new account. After doing this, its going to ask you if you want silver or gold.
But I would say dont make a silver, when setting up a XboxLive account go through all the set up, then when your choosing to pay you can click silver for free. But with the silver you cannot play games online, but if you decline pay options or silver and say pay later they give you a free month of Gold Subscriptions.Free Xbox Live, and you can repeat and make new accounts over and over again.