Once installed, you can configure the extension by navigating to the following:
System > Configuration > Sales > Search IP Filter, and Paste your IP address (if you don't know your IP Address, see below guide) in the field below and click Save Config. Once saved, the searches you make on the frontend will not be stored in the Catalog Search Terms area.

If you don't know what your IP address is, you can get it by visiting, and copying the IP address from the screen.