When do you guys use the nouns install and installation? I always used the word install as verb and installation as description for the installation process. But my american team members (software company) use it in a different way:

The only disadvantage is that the install allows the user to delete the directory

These files need to be manually removed after an install
For current installations, how would you handle ....

I'd use "installation" in all the cases above ;-)
I think they are referring to the 'block' of any software that is called the install - it is the part of the software that runs the installation on the computer. I can follow using install as a noun in this context.
I agree with you, the way they have used it sounds wrong to me.
Maybe it is different in the software world?

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 nona the brit's reply was promoted to an answer.
Old question, but it needs attention.

I'm in the U.S. and this is just slang.

Install is and always has been a verb. And they pronounce it like Southern states people mispronounce many words, such as Po' leece for police and Thee' ater for theatre. Even the local news anchors are now mispronouncing and misusing words on a regular basis.

Americans in the United States seem to have a penchant for butchering the English language.

The newest annoyance is younger people responding to a customer that says thank you, with "no problem". Like their service is a favor and not their job.

install |inˈstôl| ( Brit. also instal)verb [ trans. ]1 place or fix (equipment or machinery) in position ready for use : we're planning to install a new shower.2 place (someone) in a new position of authority, esp. with ceremony : he was installed as music director at the Cathedral of St. Barbara in Cracow.• establish (someone) in a new place, condition, or role : Ashley installed herself behind her table.DERIVATIVESinstaller nounORIGIN late Middle English (sense 2) : from medieval Latin installare, from in- ‘into’ + stallum ‘place, stall.’ Sense 1 dates from the mid 19th cent.
Install is a verb, not a noun.
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I agree. However, it seems like install is often used as a noun instead of a verb in advertisements and computer lingo.

Install works great as a noun. Great works fab as an adverb.

I'm grateful to my Mom for teaching me proper English, and to all my friends who taught me different. Mom would say this use of "different" is improper and therefore ambiguous; but she's wrong. No-one reading that sentence could mistake my meaning. I like the evolution into shorter zippier words, especially for technical writing, and especially when it goes to multi-lingual readers, which it usually does. Keep your autobiography stuffed with polysyllabic erudition, we won't be reading it anyway.

I agree with Beavis.

The technician came to install the unit. He had had some advice from a colleague who had previously installed a similar unit. When finished the installation looked very neat.

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It seems usage trumps grammar in the U.S. As long as the others know what you're saying,
that must be good enough.
-Installation became install.
-Invitation became invite.
-Consultation became consult.
-"Myself" is used where "me" belongs. "If you have any questions, please ask Bob or myself".