Ok, having just gone through this again let me clarify a little better on the steps I used. I installed directly into my Primary ibay so that is how I am explaining this.
Mambo:
1. Download mambo
2. Move mambo
mv Mambo-<version>.tar.gz /home/e-smith/files/ibays/Primary/html/
3. Change directory into Primary/html/ directory
cd /home/e-smith/files/ibays/Primary/html/
4. Untar mambo
tar zxvf Mambo-<version>.tar.gz
5. Create the data base
mysqladmin create mambo
6. Drop down into mysql
mysql
7. Add the DB user this is one long command
grant all on mambo.* to mambouser@localhost identified by 'pass';
8. Flush mysql
flush privileges;
9. Quit mysql
\q
10. Create the configuration.php file
vi configuration.php
11. Save configuration.php file
:wq
12. Change ownership on html directory
chown -R admin.shared /home/e-smith/files/ibays/Primary/html
13. Change the mode for the configuration.php file
chmod 777 config
Thats it....almost.

Open a web browser and point to the local IP address of your e-smith server and follow the instructions. I had to change the permission of the directories to be able to write to them. You may have to do the same.
Hope that helps,
Jon