You should see "UrukDroid 07 Installation framework". Please choose simple install method. When asked to, connect Archos to PC once again and copy UrukDroid-install.tgz, disconnect Archos from PC _properly_ (umount, safely remove device etc.) and press power button shortly.
Later, you will be also able to choose whether you want to copy /data partition. It's recommended not to - but you have this option.
For advanced install method - look below.
..but after this, booted to my old standard Fryo, no traces of UrukDroid
Booted again, to Developer edition and UrukDroid logo appears.. loading.. last infobar shows upside down and system starts to default desktop.
Tested booting several times and every way it just goes to my default desktop and no traces of UrukDroid except that bootup logo.