Install from epel or rpmforge repo, i’m install it from epel:
# yum --enablerepo=epel -y install denyhosts

-(Optional) If need to configure denyhosts, edit file denyhosts.conf, actually default configuration is fine..
# vi /etc/denyhosts.conf

-Start denyhosts service & make start on boot:
# service denyhosts start
# chkconfig denyhosts on

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