ok now when i download rpms from the web for fedora 3 core..what folder do i put them in and how do i use yum to install them?
You don't.
Yum downloads the RPMs itself, puts them where it wants them (somewhere under /var/cache/yum) and installs them itself.
If you want to install RPMs you've downloaded yourself, just use rpm to install them:
# rpm -Uvh your.first.downloaded.rpm your.second.downloaded.rpm ...
Paul.