You didn't have to do 1., simply installing DBD::SQLite (cpanm DBD::SQLite) builds SQLite for you: "DBD::SQLite is a Perl DBI driver for SQLite, that includes the entire thing in the distribution. So in order to get a fast transaction capable RDBMS working for your perl project you simply have to install this module, and nothing else.". From there it's a case of installing the app (cpanm App::geoip), and creating a config file with the details as specified. So the following steps:

• Read and understand the module documentation.
• Build SQLite and the perl module DBD::SQLite: cpanm DBD::SQLite.
• Install geoip: cpanm App::geoip.
• Create your config file as specified in the documentation.
• Run the app and create the database: geoip --fetch --DB=dbi:SQLite:dbname=geoip.db

I've made a note to review the module docs in light of this thread, and if I can come up with any improvement I'll raise with Tux and see what he thinks.