3.71 update confusion need help!!

[ericchen550]

I downloaded the 3.71m33 on the site, and i follow the step extacting the files to my memory stick, but at the point it said

1. Double click the installer, Choose your PSP drive letter and then press "extract" to memorystick.
This will install all needed to your Memorystick, needed for the upgrade.

*2. Make sure the GAME folder in set to 3.52 homebrew, in recovery mode.*
game folder inset to 3.52 homebrew, in recovery mode, what does that mean, howo can i set it... My current version is cr60 m33, i just modded my psp slim 2 mins ago.... help pls!!!

Here's the option i find in my recovery menu connfiguration inside
1.back
2.skip sony logo (currently disable)
3. hide corrupt icons (currently:disable)
4. autorun program at /psp/game/boot/eboot.pbp(currently disabled)
5. umd mode (cureently disable)
6. fake region(currently disabled)
7.free umd regopm (currently disabled).
8. hard reset on homebrew (currently disabled )
9.use vshmenu (currently enabled)
10.xmb usb device (currently memeory stick)
Which one is ??? help pls
Plus an additional question, should i turn those all disable to enable?? whats the best configuration??