I did this very long ago, in the V4 time frame, before the YiPS made it easier. Easier, but not as easy as RSTLICPGM.
A tar file is like a ZIP file. Tar stands for Tape ARchive, and it is unpacked with the tar command. I don't have a machine in front of me but if PASE doesn't have tar, you might consider installing it the same way you'd install GCC.
There are alternatives. You could install Linux on a PC, or live boot it from a CD, or install Cygwin on a PC and use the tar that comes with any of those environments. Untar the file on the PC and then put the resulting directory tree up on PASE where you can work on it.
One advantage to installing Cygwin (for example) is that you can exactly follow the directions to untar, make and make install right on the PC. That way you get to practice working with GNU open source without worrying about doing something ugly in PASE.
Hope this gets you started.
If you can wait until the end of November, IBM are releasing GCC as part of 7.1 TR11 and 7.2 TR3.
--buck