Hi, Myself, I feel it is best and have always read that saving the file is the right habit to get into- you are sometimes instructed to be disconnected from the Internet when installing, and you may want to turn off your antivirus program when installing. Restarts are the norm after an install, too- so I save the file where I know it can be found- either make a folder for the download, or put it on the Desktop.
There are exceptions- you must use the "Run this program from the current Location" (same as Open) on occaison, you should see instructions for that.
In some cases, you will be instructed as to what to do and where to save the file, but normally, the desktop will work to install the program FROM, the program files go into a folder usually under the Program Files dept. on your C: drive.
There ARE exceptions- which should have the directions when you download, or at least a Readme.txt file included or at the website, or FAQs about the program which will aid you.
If you buy a software and download it- you better keep the file.
You may not be allowed another download right off the bat, unless you get in touch with Customer Support etc. if you have to reinstall.
The best rule is to always keep the download file for a short while- you may need to reinstall the program- it's quite common to get things messed up during an install.
A lot I guess depends on your hard drive space available, too.
That's where a CD burner really shines- make backups!
When you download .zip files---- when you click on them, the unzipping utility will allow you to extract the files somewhere, and that is when it really pays to be on your toes..... if the file is a Self-extracting file, or .exe in compressed form.....the unzipper will sometimes mingle the files in a folder called C:/unzipped....best to make a separate folder and extract to that, and definitely not the TEMP directory....things get jumbled there, and they are very easy to get mistakenly deleted....
Hope this much helps you.