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DAC can work two different ways. First, you could install it as a mod (in your ArmA2 game directory). This would be located somewhere like "steam\common\SteamApp\ArmAIIOA." But you could also just run it as a script in your mission. I recommend the second, because it means people without DAC downloaded will be able to play.
To install DAC to run as a script I recommend unzipping it to another location (I have a games\ArmA Related\DAC on my computer). The file you get from the download will contain a lot of stuff, example missions, readme files, etc. Its all good stuff, but it need not be in your ArmAII game directory, nor does it need to be in your mission specific folder.
Open up the main DAC folder. Take out the example missions, and place them in your ArmAII missions area. Should be under My Documents. (For instance, one of my example missions is located at: C\MyDocuments\ArmAIIOA\Otherprofiles\Garthra\MPMis sions\_DAC_Script_Example.Chernarus.)
Once you have done that, open up that example mission, in a windows explorer window, and in game in the editor. Take a look at what is placed on the map in the editor, and what files are required in windows explorer. You can copy/paste or modify as needed. If you have some knowledge of scripting/ArmA you can open them up and tinker. For instance, if you examine the example mission "_DAC_Script_Example.Chernarus." You will note it has a small init file (for starting DAC at mission start) then a folder called "DAC" with configs, scripts, and other files.
As far as "not working" more generally, I will need more specific information to help you. See if you can catch me on TS, or send me a PM on the forums here.
The good news is, it is not that hard to use, and the manual is very good. It is a powerful tool, but not really complicated. So as soon as you get it running, the manual will tell you everything you need. It is under the main DAC folder under Readme, english, Readme_b.
Hope this helps.
The question foremost in my mind is "what will bring the most tactical fun to the server?"