I downloaded a game called Micro Machines V3 that came in a zip file about 60 MB. In that zip file there are 44 other zip files that are about 1.39 MB each. Some of the folders have files that have the same name and same size. Some of these files are:
mw.nfo
ss.nfo
file_id.diz

I opened the razor.nfo file and it said:
Install: Unzip it. Unace it (xace MMV3.ACE <your directory>), then
import the MMV3.REG file by double clicking on it.
To configure the controls run MM3JOY.EXE,
to use the character import/export part run MM3IO.EXE,
to play the software rendered version run INTROS.EXE
and to play the hardware rendered version run INTRO.EXE.....
My advice is to run MM3JOY.EXE first, makes playing it alot less of a pain
--

Am I supposed to extract the zip files to their own folder or to a main folder? Since some of them have the same name, they would have to be overwritten if extracted to a main folder.

Also, there is a xace.exe file that came with it that was created in 1998 and is about 83.5 KB. I assume this is the file I'm supposed to use to uncompress the .ACE files. Is this xace.exe a command line/dos uncompressor?