I just put it on its own server, rather than on a particular website, &
configured it accept data from a number of sites. As I did not want a
php site & a rails site on the same server - just to keep my
environments seperate.
Google analytics & crazyegg.com provide similar functionality. Google is
free & there is a free version of crazyegg that might be all you need.
It works really well on flat html sites - not quite so well on Ajax
heavy sites.
I found the information really helpful & it seemed to convey more info
than just raw numbers - so its definately worthwhile.