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See this for further information about standard installation of Drupal 7 modules.

It is necessary to install the citeproc-php library into the sites/all/libraries directory, such that the mainCiteProc.php file is located at sites/all/libraries/citeproc-php/CiteProc.php. 

Also, the included Bibutils submodule only provides PHP interface to the Bibutils tool itself, which must be installed separately. Follow these instructions for installing Bibutils.

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