to install, unpack the tarball:
tar xvfy fwatch-x.x.x
dive into the src dir:
cd src
and compile:
make

If any errors occur, you might need to adapt the makefile to the
location of your kernel sources.

If successfully compiled, cp the module to your module dir (for ex.):
cp fwatch.o /lib/modules/<your kernel version>/misc/

If you want to run the fwatchread example, insmod the module:
insmod fwatch.o
and run the example:
./fwatchread

All changes on files will be reported to the console.