Newbie: Help installing plugins

[rzpvile]

I already read the newbie tutorial here but I'm still confused.

I hope someone can enlighten me about this.

Whenever I download a plugin I always get 2 files the "Upload" and a "xml file"

I just want to ask what to do first?

Do I need to upload the files first on the server? If yes, is there a specific folder there where I will put the "upload" file? or I will just put it on the root of forum?

After I upload it? I will upload the xml file right? I wonder where under the plugin and manager will I upload it. is it on the "manage product" or "download/upload plugin" ?

I hope someone can help me asap here.

Thanks!