locate downloaded games

i don't know how to place my downloaded games in my psp.

is it need to create a folder in my memory stick for example

memory stick > create a folder(games) > put my games in here?

jus like how i create a folder for my music or? need help pls >.<

and my downloaded games is in .zip files. i need to extract all out or jus put it in as it is?

so the folder name called ISO right

then in the folder, i shld create another folder for my game and put my zipped-game in it or extract out?

edit:

i created it in the way like

PSP > GAME > in here have folder called UPDATE also. did i done correctly? =/ ahhh im a noob in psp

and wen u say games, i think u mean isoz, not gameboy games. right?

Sorry to go off topic but damn everyone has a better Windows Theme than me
Stoning whats your firmware?