How does a small cd install on my cd rom device?

Unless your drive is terribly old the small cds should fit just like regular ones you just place them on the drive bay that goes in and out, or if its a laptop (depends on the device) there should be a **** to put it in or a drive that pops out and you then would pop it on the spinner in the middle.

Take a close look at the "tray" of the CD-drive;
it will have a recessed center, where the smaller CD will fit exactly as it should.

There is usually a space right in the center of the slot that comes out when you eject your CD Drive. If it cannot read it, then chances you will need a DVD reader.