Hey!! No panicking allowed. It's really quit simple. But before I begin I feel obligated to tell you that using "patched" or "fixed" software is illegal and could possibly get you into trouble. With that said the chances of that happening are very slim.
Now, as far as your question goes, the steps you gave in you question are exactly what you must do...I'll try and explain them a little better so you know what's going on:
1. Install the program you are trying to use.
2. If the program is running in the background of your computer (ie: if there is a icon in the taskbar) or if you have it open in front of you make sure you close it down....Completely!!
3. You want to copy (right click on the patch and select "copy") the patch and then paste the copy of it in the folder where the program has been installed. (ie: If you would be trying to "patch" MSN then you would want to go here: C:\program files\MSN Messenger) Most programs are installed in the "Program Files" directory (or Folder). You mentioned that the Program you are trying to patch is "Tunebite," so my guess would be that you would find the folder you need to paste the copy of the patch in here: C:\program files\tunebite. To find the C Drive (C:) just click on "My Computer." Once you have done so and clicked on "Program Files" you may have to click on "Show the contents of this folder” if you don't see that after clicking on "program Files" then don't worry about that step.
After you have opened the "program files" folder take a look around for the Tunebite" folder (***Hint: The folders located in the "program files" folder are usually in alphabetical order.***). If you find it, open it, right click somewhere inside the folder (Not on any of the icons or folders located inside) and choose "Paste." The icon of the patch will appear. (If there is no "Tunebite folder you will have to search around inside the "Program Files" folder until you find what it is called (Sometimes the folders are not named the same as the program you install)
4: Double click the patch. The patch will normally (But not always) tell you that you have "patched" or "successfully patched" the program. Even if it doesn't tell you that it has though, they usually work so don't sweat it. (***Sometimes even the "Demo" or "Trial" tag, isn't removed from the program even though it no longer is a "demo" or "trial" program.***)
5. Run the program. This is the best way to find out if the patch has worked. Try it out. Do whatever it is that the program does and see what happens.
6. Enjoy!! <-----I don't think you need clarification on this one.!!!
Hope this helps.
Any questions? Just get a hold of me. Good Luck!!