I've seen many receipes for how to install Node.js and Karma on Ubuntu 11.10, but none as simple as this.
Download latest Node.js from
http://nodejs.org/. Unzip the .tar.gz file into some directory (from here called nodeJsDir).
Open a terminal and type in the following commands:
cd nodeJsDir
./configure
make
sudo make install
There after simple install karma by executing the command
sudo npm install -g karma
Karma can now be started executing
karma start