First you need the 1.2.3 server jar file, you can create one using this program: http://dl.adshi.net/minecraft/versionchanger/MVC.zip
If you have windows 64 bit or Mac/Linux then download this one: http://contrillion.com/mvc/mvc/dl/Minecraft%20Version%20Changer.exe
You need to have .NET Framework installed for this to work.
Find where it says 'Full 1.2.3' and click it, then find on the right hand side of the screen where it says 'Server'. Then choose a folder to put it (Probably the server folder)
Second you need to get the server files from Frizzil's forum post: https://yogscast.com/showthread.php?46534-MOD-Hack-Slash-Mine!-(Magical-Loot-System-Randomized-Dungeons-and-More!!! The server files are in the download for the mod itself.
Drag the server files into the 1.2.3 Server jar whilst it is open with WinRAR.
(WARNING: 0.5.3 Pre-Release does not work with Multi-player yet. Use 0.5.2 Until 0.5.3 Has actually came out. Thank you)
Third, set up your server the way you normally would. CraftBukkit is not supported by this mod yet so you can't run Hack/Mine on it.
Fourth, Go adventure with your friends!