TO INSTALL, simply add the database and activate the module, in these steps.

PLEASE CHECK, that you use the right version of Taxonomy Access for DRUPAL-4.7. (taxonomy_access-4.7.0.tar.gz)

NOTE: Personally, I DO NOT RECOMMAND USING TWO OR MORE "ACCESS" MODULE AT THE SAME TIME (e.g: OG, node_privacy_by_role, taxonomy access, etc.)at the same time, only in case you know exactly what you are doing, and if you tested it thoroughly. 
  (If you used other access modules before, read the 'Troubleshooting' section)

PLEASE NOTE: There is no need to patch the taxonomy.module. (it was neccessary only in previuos versions of Drupal 4.5 and 4.6)

TO UPDATE from previous versions of taxonomy_access: PLEASE READ UPDATE.TXT!
  WHEN UPDATING, ALWAYS disable the module first (admin/settings/taxonomy_access) and then remove it (admin/modules) before uploading the new module.

INSTALLATION:

1) COPY taxonomy_access.module and taxonomy_access.install to your drupal installation's module directory

2) ACTIVATE THE MODULE from administer >> modules

3) ENABLE TAXONOMY ACCESS SETTINGS: Go to administer >> settings >> taxonomy_access and enable the module

4) CONFIGURE ACCESS PERMISSIONS to the various categories from administer >> access control >> category permissions

NOTE: DATABASE TABLES are automatically added to database. Module creates two tables in database: 'term_access' and
  'term_access_defaults'.

TROUBLESHOOTING:

For general housekeeping of the 'node_access' table, go to /admin/settings/taxonmy_access: First 'Disable', then 'Enable the taxonomy_access module'.
  This regenerates the 'node_access' table (only the values related to taxonomy_access) according to taxonomy_access settings (stored in table 'term_access').

If you have troubles with node access (users can view/edit pages, they do not have permission), and you used other access modules before (OG, node_privacy_by_role, etc.). 
  Try this: after backing up the database, try deleting values from the "node_access" table ( TRUNCATE 'node_access' ).  Then for regenerating the "node_access" table (according to TAC settings) go to /admin/settings/taxonmy_access: First 'Dsable', then 'Enable the taxonomy_access module'.