You don't need to unzip it.
You should jailbreak your Kindle first, if you did not already.
Also, you should probably install launchpad then (it doesn't seem you did yet, since there is no "launchpad" directory on your kindle).
You can create the "customupdates" directory manually if it doesn't exist.
You just put the downloaded ZIP file into that "customupdates" directory.
Yes, the keys are to be pressed in sequence. They need to be pressed _fast_. Space is the "Leertaste" (german), so yes, the "long" empty bar. The "I" is the letter between the "U" and the "O" on your keyboard :-)
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