Installing MU plugins

On my site http://www.carobowl.com I was trying to install the ‘Remove Email Verification From Signup’ plugin. I read that this MU plugin is now OK with Buddypress. Even after reading all the instructions I can not install this plug. Do I still create an extra folder named MU plugins in Buddypress? I have read the readme page but am confused which unziped file goes were. Which folder do I put it in for my non MU BuddyPress?.

Please help with which file to transfer into which folder via FTP.

Please help