. . . a lot of the information you're needing can probably be found
here, and is worth the read.
Alternatively, a similar question to yours was asked by another user a few days ago
here, which may make things clearer. You'll notice a wee test box and button labelled 'search' just to the top of this page. It's great at finding a lot of this sorta information for you.
What you need to do is extract the zipped files within the patch into your PlaneShift folder. If they don't do this smoothly (i.e. won't copy over the top of your original files), reboot your computer and try again. When that's done, run the Updater (Start -> Programs -> PlaneShift Crystal Blue -> Updater), then launch the game . . .
. . . good luck!
