Lay a piece of crown molding upside down on a miter saw table, so that the edge that normally contacts the ceiling rests against the horizontal table and the section for the wall sits against the vertical fence. Clamp the molding in place.
Line up a piece of plywood against the crown molding where it contacts the table. Clamp or glue the plywood in place and remove the molding. This creates a guide for cutting.
Set the miter saw blade 45 degrees to the left and cut through the plywood. Repeat 45 degrees to the right. Remove the cut-out section to create a template for cutting your crown molding.
Set your first piece of crown molding upside down in the saw so that it lines up with the plywood, with one end in the template area. Set the blade 45 degrees to the left if you intend to install your molding counterclockwise around your room, to the right if you intend to work clockwise.
Slice the edge of the molding at the appropriate 45-degree angle. Cut the second piece of plywood in the opposite direction that you cut the first. This creates a scarf joint, so that the two pieces join together smoothly.
Line up your first piece of molding in one corner of the room and attach it to the wall and ceiling using 4D finishing nails and a hammer or nail gun. Install the nails through the flat sections that contact the floor and ceiling, setting a nail every 6 to 8 inches along the board. Ignore the gaps caused by the texture for now.
Spread a thin line of wood glue to the cut end of both pieces of molding. Press the ends firmly together and attach the second piece of molding to the ceiling in the same way as the first. Wipe away any extra glue with a damp sponge.
Lightly sand the glued joint when the glue dries using 100-grit sandpaper to create a smooth surface. Continue to work your way around the room, cutting, gluing and nailing as necessary until all of your molding is attached. Allow all glue joints to dry before continuing.
Fill a caulk gun with paintable acrylic latex caulk. This type of caulk will allow you to paint the joints to match the walls and molding while sealing up the gaps.
Squeeze a thin bead of caulk along the joint where the molding meets both the wall and ceiling. Wipe off any drips or excess with a damp sponge; if necessary, wet your finger and spread the caulk fully into the joints. Allow the caulk to dry overnight before continuing.
Inspect the surface and fill in any gaps you missed. Once all caulk is completely dry, paint it to match your wall.