Still not sure? Check out this nice video from Ivy.
It is recommended to have one folder for each modification you have. The usage is simple, you just have to create one or more folders inside modloader directory and then drop the mod contents there.
Mod Loader is an ASI Plugin for Rockstar's Grand Theft Auto San Andreas that adds an extremely user-friendly and easy way to install and uninstall your modifications, without even messing around anything in your game installation. Disclaimer: Although we make every effort to ensure the validity of submissions to the GTAGarage database, GTANet cannot accept responsibility for the contents of user submitted files.