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I would take off all the trimwork along the floor, and consider replacing the tackstrips (woodstrips with nails) if they are water damaged. Cut the carpet large, and trim it against the wall once you get it laid down. Don't forget to strech it as well.
I've never laid carpet myself, and I don't know if I'd be able to handle it myself. Might want to consult with a professional, and if it's only the one room, it may be worth it to pay to have it installed.
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