3
I think I understand now. You have to go to the modules and create the folder for the new module first. Then you go to that folder and upload the zip and then extract it there. I was under the belief that it created the subdirectory for you like it does when you upload a new theme.
For example if I wanted to upload the Frozen Bubble mod, I would go to the modules directory and manually create a Frozen Bubble folder or subdirectory and then upload and unpack the zip there?