Userport in XP

Userport in XP
I have some software working on WinME that I need to work on WinXP but to do this I need to use Userport and compatibility in properties. I have no problem with the compatibility bit but I would be obliged if it could be explained to me in simple terms part of the instructions on how to set up Userport as shown below.

(3. Choose a disk drive on your system to keep the UserPort files. For example, I will use “C:”. Unzip userport.zip into “C:” with the “Use Folder Names” option turned ON. This will create c:\UserPort (and some other directories we won’t use.)