To install the transport you need a copy of the xmpppy (by Alexey Nezhdanov) library on your system and a copy of the irclib (by Joel Rosdahl). You can find both of these at the following addresses:
http://xmpppy.sourceforge.net http://python-irclib.sourceforge.net
To make the irclib library integrate with the transport more effectively you need to patch it with the supplied diff file: irclib.py.diff. (patch <irclib.py.diff works for me). This allows the external select function without needing lambda functions. This is required for the transport to operate.
To configure the transport you need to modify your jabber server configuration to expose the irc-transport to users. The transport itself has a configuration file which it reads on startup. A sample configuration file is provided, copy it as config.xml and change the settings as required.
Some people may have set the python site.py encoding to something other than ascii. The transport relies on this being a non-unicode value, if you have set this to utf-8 it may not work.
The Jabber.org.uk crew who let me abuse their server while doing testing. Alexey Nezhadanov for his help and the library. Joel Rosdhal for the irclib library.