Download the file linked above and unzip it.
Grab an unmodified Minecraft 1.2.3 server jar.
Be prepared to use your favorite archive editor (WinZip, 7Zip, etc)
Drag the innards of "server" into the server jar.
Drag the innards of "lib" into the server jar.
Do NOT delete the META-INF from the jar!
Place the jar wherever you want it.
Copy the "spells" directory itself into whatever directory the server jar is located.
Run the jar, and you're all set!
START SERVER WITH THIS http://www.mediafire.com/?tewybn7ndoiqx9y (server starter AKA atachment)
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http://forums.yogscast.com/showthread.php?46534-mod-hack-slash-mine!-%28magical-loot-system-randomized-dungeons-and-more!!!
++++ http://www.mediafire.com/download/2lcw4ig8t0w1ria/hackslashmine0.6.4.6.zip ++++ H/M latest version.
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