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Hello, you do not need the 'install' directory if you are upgrading your site. This can be safely deleted. You do need to read any update instructions that come with the patch. Also my advice to you, is to install a testite on your server, in a sub-directory. This should a duplicate of your existing site. See the FAQ for details about this. Carry out the upgrade on your testsite first and debug any problems before going on to your production site.
Richard