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Date API Installation instructions:
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1) If you have an earlier version of the Date module on your system, empty the
   date folder out completely. The files in version 2 have different names and are
   located in different places.

2) Download the whole package of files from http://drupal.org/project/date.

3) Upload the date files to the modules directory. The package includes files 
   needed by the Date API, and optional modules to to create CCK date fields.

4) Go to admin/build/modules and enable the needed modules from the Date/Time group. 

You should end up with a structure like: 

   /drupal/sites/all/modules/date/date_api.info
   /drupal/sites/all/modules/date/date_api.install
   /drupal/sites/all/modules/date/date_api.module
   ...

   /drupal/sites/all/modules/date/date/date.info
   /drupal/sites/all/modules/date/date/date.install
   /drupal/sites/all/modules/date/date/date.module
   ...

   /drupal/sites/all/modules/date/date_copy/date_copy.info
   /drupal/sites/all/modules/date/date_copy/date_copy.module
   ...

   /drupal/sites/all/modules/date/date_php4/date_php4.inc
   /drupal/sites/all/modules/date/date_php4/date_php4_lib.inc
   ...

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Older PHP versions
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If you are using PHP 4 or PHP 5.0 or 5.1, native date handling won't work right.
Install the Date_PHP4 module to enable wrapper functions so this code will work
in old PHP versions. 

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Enable Date Timezone
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In most cases, you should enable the Date Timezone module any time you use the
Date API to be able to set the site and user timezone names. It is not enabled by 
default in case another module is setting timezone names in the database.

Once you have enabled it, go to admin/settings/date-time and set the default 
site timezone name. If you are using user timezones, go to your account settings
and set up your own timezone name.

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Install CCK Date Fields:
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1) The CCK date field is included in the Date files at http://drupal.org/project/date.

2) Go to admin/build/modules and enable the Date module. Be sure that the Date API module,
   the Date Timezone module, and the Content module are also installed.

3) Go to admin/content/types to view cck content types and edit a content type.

4) Make sure the default timezone name has been set at admin/settings/date-time.

5) While viewing a content type, select the option to add a new field from the tabs at
   the top of the page. Several options for date fields should be visible.
   
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More documentation is available at http://drupal.org/node/92460.
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