This seems like a really stupid question in a sense, but I've been struggling for a while and I'm completely confused. I've only had Fedora installed for about an hour, complete newbie but it feel like it should be pretty obvious.

I've opened a .tar.bz2 file fine in the archive manager, then I'm able to extract it... the problem is I've got no idea where to extract it. It's Azureus, and judging by the contents I'm guessing it should just extract directly into a folder, then run. I suppose in one sense I'm looking for a Program Files type directory, but even if I try creating a new Azureus folder I'm told 'access denied'. I must be missing something obvious, but I don't honestly see what

I don't properly understand the file structure, I feel a bit lost really.

I would put the extracted directory into /opt. If its just yourself using the system, you could create /home/user/programs and place it in there. There isn't anything similar to Program Files in Linux and if you want to understand more about the filesystem structure on Linux, take a look at the FHS. Permission denied errors can happen if you try to write to places where only root has access. You will have to switch to root using the su command in a terminal or start a file manager as root (if using kde its menu -> system -> file manager -> file manager super user mode).

Nice little filesystem table
Redazz is right about getting the complete(ish) information

As far as Azareus, most programs will have a README and/or INSTALL type of file that should give you information to get you up and running. You don't say whether there was any documentation (there'd almost have to be a website and documentation at it, at least) or whether you read it. Again, Redazz probably got you going but, for future issues, these things help.

Why not use yum and install azureus and save yourself the bother:
and you can also use "yumex" and browse all of the packages with a gui also:
once installed go to Applications>System Tools>Yum Extender or use "Add/Remove Software" to browse a list of all of the packages available from the Fedora repos. If you choose to build "azureus" read my edit.

EDIT: You already have a home directory so there is no need to create one. You can place the "tar.gz" in your home directory and right click on it and select "Extract Here" and a directory will be created with the "untarred" files. Make sure to read "README" and "INSTALL" that should contain any pertinent build info. You will also have to have the necessary tools installed to be able to build the package before starting.

Yeah, the readme seemed quite limited with Azureus - it said that you needed to extract it, but not where to extract it to... having read the post by redazz, I now see why! I guess it's just adapting away from the stuff I've been used to for so long. Thanks for the information both of you.

EDIT: I didn't realise it was possible to do it via yum. I'll check yumex out now, thanks.