Installation instructions:

1. Download the Inline Tags module, and decompress into your local modules directory. (typically /drupal_root/sites/all/modules)
2. Go to Site Building -> Modules, and enable the inline tags module. (If the Taxonomy module is not enabled, you'll have to enable it first.)
3. Go to Administer -> Site Configuration -> Inline Tags, and select the free tagging vocabulary to use inline tags with from the first menu.
Once the page has refreshed, you will be given a list of valid content types to use inline tags with.
Finally, you may choose whether inline tags will replace or add to existing tags when editing an already-extant post.

Finally, edit a post with the editor or blogging client of your choice. Place comma-separated tags in the body of the post, enclosed in [tags][/tags].

e.g.: [tags]drupal, free tagging, xmlrpc, blogapi[/tags]

Submit the post, and the tags will be stripped from the body and saved.