Help installing The Sims 3 Island Paradise please!

Im a noob, yeah, sorry.

I downloaded The Sims 3 Island Paradise but nothing is in folders? Is this suppose to be like this?
 Also when I try to extract files into an empty folder it comes up asking me if I want to Copy or Replace files or Ignore? Just making sure Im doing this right. :')


But when I try to install the game it stops and says "Insert disc 1" because it can't find some cache file.
I did add the crack files to the base games, too.