Step 1: Download the source from
http://geteggdrop.com (or
ftp://ftp.eggheads.org).
Step 2: Unpack the archive on your shellaccount (tar -tzf eggdrop1.6.19.tar.gz) to a suitable location
Step 3: Make sure you're in the directory where the source was unpacked...
Step 4: Run the configure-script with any needed options depending on your system (./configure)
Step 5: Assuming the configure-script went just fine; run make with the config or iconfig target (make config)
Step 6: Assuming the make config went just fine; run make (make)
Step 7: Assuming the compilation went just fine; run make with the install target (make install)
Step 8: Change directory to wherever you installed your eggdrop (usually ~/eggdrop)
Step 9: Edit your copy of eggdrop.conf accordingly
Step 10: Start your eggdrop in userfile creation mode (./eggdrop -m yourconfigfile)
Step 11: Catch your eggie online, and /msg yorueggie hello
Step 12: Set a password (/msg youreggie pass yourpassword)
Step 13: Enjoy...
Btw, apart from putty using encrypted communications rather than plaintext, there's no difference from "telnet way" and "putty way"... In fact, putty supports unencrypted connections (telnet) as well...