Originally posted by MoneyB

ok ...plz explain why the file location makes a diference ?
/game is where updates are found. This is where you would place modified files such as an eboot, rpf, etc.
When the game is launched it reads from the update folder.
/GAMES is where backup/pirated games are located. This location is where full games are loaded from. If there are no updates for the game, it will load from here. For example, if there were no updates, the eboot would be read from here.
Replacing files in this directory can cause many issues for games. You are messing with the official game files it uses to read. Depending on what game and what was changed it could cause the game to not load, have a black screen, or not work properly.
In some cases, you can replace an eboot here. Those cases are typically when a game, which doesn't have any updates installed, won't launch or has issues. You then replace it with a "fix" eboot. Other cases would be when wanting to mod a game, sometimes the modified file is in the games install contents. So you'd replace whatever file it was and then install the game, which would install the modified version.
Almost every game has updates, installed or not. So you replace them in /game. For noobs it's simple to just tell them never to mess with /GAMES unless needed. Understand the difference?