newbie to backups needs help

[ip4u]

i am new to pc's and a newbie to copying,i want to back up grand prix3,gamecopyworld gives me instructions what to do,but i dont understand them.
this is what it says:
CD-Copy Instructions:
Create the following temporary directory:
TempDir : C:\TEMP\CD
Copy the full contents of the original CD to TempDir.
Replace the <TempDir>\GRAND PRIX 3\GP3.EXE file with the one from the Executable Archive.
Burn the contents of TempDir to a CD-R and use this CD-Label: GP3
Remove/Clear the TempDir.
Play the game!
but i dont understand it,can somebody please explain how i do this.i would be very grateful.
i dont even know how to create a temp directory,could someone please help me learn the art of copying.

thx