Use a stud finder to find the first stud along your installation wall. Alternatively, if you know the spacing between your wall's studs, use the wall's corner stud as a beginning point. Typical spacing for residential framing is 16 inches or 24 inches on center. Hold a tape measure against the wall from the floor to the desired height of the chair rail. Mark the height over the stud with a pencil.
Hold a level over the mark and align the level to a horizontal position. While holding the level in position, use the stud finder or a tape measure to locate the position of the adjacent stud. Use the level and a pencil to mark the position of the adjacent stud at the desired height of the chair rail. Mark the positions of the remaining studs, using the level to keep all marks at the same height.
Cut the chair rail to length using a circular saw. Position the chair rail against the wall. Align the chair rail with the marks that indicate the desired height of the chair rail. While holding the chair rail in position, place a level against the top edge of it to check if the rail is level. Use the level to adjust the chair rail's level, if necessary.
Lay down level and continue to hold the chair rail in position. Pick up a finish nail gun with your free hand. Drive two nails into the stud at the beginning of the chair rail with the nail gun. Drive one nail into each stud along the center of the chair rail. Stagger the position of nails along the chair rail's center between the top edge of the rail and the bottom edge of the rail. After nailing over three or four studs, you may let go of the chair rail; it will now hold itself against the wall.
Drive two nails into the stud at the final end of the chair rail.