I don't think it runs the .install file at all when installing the module.

it did not create the edi_classified_nodes table as I think it was supposed to?

The value of "ed_classified_vocabulary " variable in the variable table is 25

And I am unsure exactly what steps to take to "create my own taxonomy" and then look up its taxonomy id #

EDIT: I think I have it working. I updated the vocbulary item and set it to '89' which is the pid of the classified ads container/classified ads/category I had created. I then created a sub category and then tried adding a new classified ad to that category. it showed up. all must be well. THANKS!