The easiest (and best) way to install kademlia is through pip:
$ pip install kademlia
To start a new network, create the first node. Future nodes will connect to this first node (and any other nodes you know about) to create the network.
../examples/first_node.py
Here's an example of bootstrapping a new node against a known node and then setting a value:
../examples/set.py
To run tests:
$ pip install -r dev-requirements.txt
$ python -m unittest
The current implementation should be an accurate implementation of all aspects of the paper except one - in Section 2.3 there is the requirement that the original publisher of a key/value republish it every 24 hours. This library does not do this (though you can easily do this manually).