Red Hat RPM Advice

[karina.popkova at verizon.net (karina.popkova at verizon.net)]

I need to install some RedHat RPMs
I have an old Lap Top with RH 7.3, which runs fine.

I have Cd set and (obviously) the RPMs I need are on disk 4 and 5.
I can mount CDs and view listing of Pkgs.

Where is appropriate to copy Pkgs, 
prior to install ?

Book at Barnes & nobles says:
use:
> rpm -Uhv somename.pkg    // to install

what directory should I copy src.rpms to, from CD,
prior to install or
un-archiving pkg into files (?)
Then whre should source files reside?
Assume files end up in /usr/include/linux    (???)

Any advice appreciated

Karina