@azharnasir
Your questions:
Q1) one folder says PSP and the other says some plugins. Do I put Eboot.pbp in the X:/PSP/GAME150 folder and then execute?
Q2) What do i do with the plugin folder?
Answer:
Copy both folders to the root of your memstick. The update will be copied to right place on the memstick. The update will the appear in your XMB unde Game/memstick. You can execute it from there.
The seplugins-folder contains updates for the PS1 emulator (aka Popsloader). With this update you can select other emulators from different firmwares. Some PS1 games work better under an older version of the emulator.
Hopefully this answers your questions.