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Yes, the three lines are the installation instructions. They are a little short, I know.
You should install the software as root, as all software on UNIX should be installed (I know, Oracle Universal Installer does it differently).
Then the users can use the software, but not mess with it.
But that's just my opinion, not a hard requirement.
You will need the SDK package if you want to compile C programs that use Oracle.
You can easily find out whether you need to specify -m64 or not: create a simple "Hello world" C program, compile and link it and use the "file" command on the resulting executable to find out whether it is 32- or 64-bit. If 32, use -m64.
The make files in the SDK will have the right set of flags and you can use them to compile your application.