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Installation instructions are right in the Readme and are succinct. Extract the Out_of_Hell folder into your ut2004 install directory, done. At that point you can enable it within UT2004 like you would any other mod, or you can use the shortcut supplied in the folder, so long as you make sure its link reflects the folder you installed it in.
A Basic license without source code is only $100. This would give you tools and examples equivalent to what you get with UDK. But you cannot sell a product you make.
The standard license includes source code along with the tools, you can sell your product for whatever price you want, so long as you dont receive more than $100,000 in funding from a publisher. I personally have a standard license. It's well worth the money.
Check out the website. www DOT terathon DOT com