InstallationQuote:
When you die, if you have a chest in your inventory, it will be placed where you die, or in the closest available spot. The chest will be filled with as many items as possible. Items stored in the crafting slot are still lost, as usual, and any excess that won't fit in the chest will be dropped.
1) Open up %appdata%, if you don't know how to do this, start>run, then type in %appdata%
2) Browse to .minecraft/bin
3) Open up minecraft.jar with WinRAR or 7zip.
4) Drag and drop the necessary files into the jar.
5) Delete the META-INF folder in the jar.
6) Run Minecraft, enjoy!
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Credits: Risugami