The best way to update the INSTALL file would probably be start it off with "try running install.pl, in the scripts directory, first." Of couse, I don't know how well the install.pl works, but it should get you started.
As for Data::Dumper getting a newer perl, that's because Data::Dumper is included with perl. The biggest problem with CPAN is that, by default, it automatically follows dependancies. When you first start the shell, it'll configure. You can tell it to always ask instead, which is much safer. You can get back to that first init by doing "o conf init" at the CPAN shell. So after setting it to ask first, when CPAN tries to upgrade perl, just slap it on the nose and tell it, in a commanding by loving voice, "no."
As for the MIME::Base64, if you use the installer, it works differently from update-cpan.pl, so it will install that before trying to install Apache::Session.
For the headers, right now the INSTALL recommends compiling from source, mainly because almost all binaries that people have suck.
I think the reason that it doesn't mention Include'ing the http-*.conf file is that it's usually put in the httpd.conf. At least, that's how I do it. However, with the installer (if that part works), I know that it generates a conf file, and tells you to put an Include in your httpd.conf. If you're using apachecl to start and stop apache, then "apachectl configtest" will test your config. This is run automatically before starting, so you can't start Apache if you're config is screwed up.
And finally, I'll ask you: what did you need /usr/bin/mail for?
Anyway, the INSTALL does need to be rewritten. It's well out-dated, and personally I don't think it needs instructions on how to install mod_perl. I suppose a rewritten INSTALL should go in as a requirement for .8
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Keith Smiley