I'll explain the installation of the PlugIn as best I can.
If u have any questions, are still unsure or it doesn't work, let me know OK. This is one way you can do it.

 

Firstly, clck here to download the PlugIn

 

1. Download & save 'Variations PlugIn 5' to your Desktop. (It is a zipped file that needs unzipping)
2. Right click zipped file, then click 'open'.
3. Extract files to Desktop again. [You  should see 'Extract Files' in the menu to the left of the window,
    click on this, this will open your extraction wizard "Win Zip"(that's if your running windows XP) click
    'next', then 'browse' and click on 'Desktop' and 'open'. Click 'next' to extract files, uncheck 'Show Files'
    and then click 'Finish'] You should now have a folder named 'VariationsPlugIn' on your desktop.
4. Right click on this folder and 'open'. You should see 3 items in this file (text document, variations
    and a zipped folder called PlugIn)
5. Left click on 'Variations' to select it then on the left hand side of the window, click 'Move This File'
    a window will come up called 'Move Items'
    Scroll down till you see "Program Files", click the plus (+) sign next to the folder to expand the files,
    Scroll down till you see either 'Coral' folder (for PSPX) or 'Jasc Software Inc' (for earlier versions),
    Click on the plus (+) sign to expand, then click on 'Paint Shop Pro (your version here 7,8,9,X) to
    expand again, then click on 'PlugIns'
    Lastly, click on the 'Move' button at the bottom of the window. [The window will close and you will
    have the original window that you unzipped, still open (now with only 2 items, text document and
    zipped 'PlugIn' file)]
Now for the second part:
1. Right click and 'open' zipped 'PlugIn' folder. You will see one item called ' PlugIn.dll', click 'Extract Files'
    (on the left hand side of the window)
    The extraction wizard (win zip) window will come up.
2. Click 'next', then 'browse'('Select a Destination' window pops up)
3. Click on the plus (+) sign next to 'My Computer' to expand
4. Click on the plus (+) sign next to 'Local Disk' to expand
5. Scroll down to 'Windows' file and click the plus (+) sign to expand
6. Scroll down till you see 'system32'. Click on 'system32' to highlight it, and then click on 'OK' at the
     bottom of the window.

 

YOUR DONE!!!!
Now open PSP, open a black and white picture, click on 'Effects' scroll down to 'Plug Ins' and expand,
click on 'Adjust' and expand, and lastly click on 'Variations'. Your colorizing window now opens and your
ready to colorize.