The way the vb suite works, you will either have /forums in there for everything or not at all.
To answer your question, the public_html folder is your "root URL". If your site isn't public yet and you haven't made any changes to it, it might be easier to remove the forum directory and start over with the installation instructions (but don't create a forum folder, just copy the contents of upload to public_html). If you do that it's probably easier to save your current forums/includes/config.php so you don't have to edit it again.
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