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The biggest part of putting up moulding is holding it in place and driving a nail every 16 inches. It's the few inches around the corners, however, that will require your attention. Inside corners - the kind that out-of-favor children stand in - take a regular miter joint.
Miters are most easily cut on a power miter saw. The saw can be set to cut at any angle - set it to 45 degrees for a standard corner. The saw can be set to 45 degrees to the left or 45 degrees to the right. So it's a little confusing at first, but once you get the hang of it, it's automatic.
Most people like to install moulding working from the left side of a wall to the right, and these directions assume that you will, too. It's hard to get a miter exactly where you want it to be on a board. When you're mitering, cut the miter on a piece a little bit longer than you'll need. Cut it to length by making a square cut.

Miter the first piece of moulding.
Start with two
pieces of moulding, each a few inches longer than the section of wall they
will cover. Set the saw blade 45 degrees to the right. Put the moulding that
goes on the left-hand side of the corner against the fence to the left of the
blade. Cut the moulding, leaving it long.

Miter the second piece.
Turn the saw blade 45 degrees
left. Put the second moulding to the right of the blade, and cut a miter in it
that leaves the board longer than finished length.

Lay out the length.
The point of an outside miter
sticks out beyond the corner by the thickness of a moulding. To get the right
length moulding, measure the wall, add the thickness of the moulding, and make
a mark that distance from the point of the miter. It's sometimes easier if you
do it in steps, as was done in the photo. The moulding shown here runs along a
short wall of an alcove, which measures 10 3/8 inches. The moulding is 1/2
inch thick. If you look closely, there's a light mark on the moulding at 10
3/8 inches. The moulding is 1/2 inch thick. If you look closely, there's a
light mark on the moulding at 10 3/8 inches; the second mark, which shows
where to make the cut, was made by measuring over the thickness of the
moulding.

Cut the moulding to length.
Set the blade for a square
cut (0 degrees), and lay the moulding on its back on the saw table. Cut the
moulding at the line.

Install the mitered piece.
Test fit the pieces. Nail
one of the mouldings on the wall, dab wood glue into the mitered surface on
the second piece, and nail it in place, too. Reinforce the joint by driving
1-inch brads through the faces of both mouldings, through the miter joint, and
into the other moulding.
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