Either: -
* Upload the plugin from the Plugins page in WordPress
* Unzip wp-dynamic-links.zip and upload the contents to /wp-content/plugins/, and then activate the plugin from the Plugins page in WordPress
For best results enable Pretty Permalinks from the Settings -> Permalinks page in WordPress. This will make your links look like
http://www.your-domain.com/your-link instead of
http://www.your-domain.com/?cloaked=your-link