The game works in a client/server way. When you start up KBattleship you must start a game, giving your fleet's name. Your enemy must then connect to your running instance of KBattleship giving your machine name or address and his fleet's name, then both of you can place the ships;
To place ships, simple click on your field: LMB places a horizontal ship, RMB places a vertical one. Ships are placed from the widest (4 sect) to the smallest (1 sect).
The 'server' is the one with the rigth to fire first. If you hit a ship, you are given the chance of shooting again, else the controll passes over to your enemy.