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I think you have to put it in system\apps or whatever and set permissions, then reboot. You would use root explorer to accomplish this the easiest. A straight up apk install wouldn't work.
I've done APK installs before (fennec for example) where I downloaded it directly from the website using dolphin broswer, and installed it directly from the download folder (on the SD card). I used root explorer to put it into system/app, and edited all the permissions to allow everything, and it still doesn't install.