When you download a driver for a piece of hardware in your computer, you're actually downloading a compressed file that contains the one or more actual driver files, plus various other auxiliary files necessary to get the driver installed in Windows 7.
So before you can update the drivers for a specific piece of hardware, you have to extract the files from the download you completed in the previous step.
Windows 7 has built-in compression/decompression software but I prefer a dedicated program like the free 7-Zip, mainly because it supports so many more formats than Windows 7 does natively.
Regardless of the program used, you can usually right-click on the downloaded file and choose to Extract the files to a folder. Be sure to create a new folder to extract the files to and make sure you choose to create the new folder somewhere you'll remember.