Cannot install new applications IN applications folder. Why?

Dear Fellow Mac users,
This week I have tried to install 2 new applications to my Powermac G5 which runs Panther 10.3.9. The applications were Firefox (for this version of OS X, of course), and Skype. BOTH applications downloaded fine--when I double click to launch the dmg file I get this window which prompts me to drag the install file off the deskop into the applications folder. THIS is where the problems begin: I can't get it to work! Instead a 'shortcut' is made in the applications folder--to the dmg file which INSISTS on staying on the desktop--like it's a hard disk volume or something! Weird. So I gave up trying to install Skype. I got Firefox to work this way, but it *****...it runs like crap this way. Why is this happening and what do I have to do to fix it??? Oh--and one other maybe useful bit of information: last January 2007 I put this computer into long term storage when I went overseas...it wasn't until just two weeks ago that I came back, brought it out of its box and started it back up again. At first everything seemed to run fine...except Safari, which began to continually crap out and crash at start up...hence my deleting it entirely and going for Firefox. That's when I first noticed this apparent inability to install applications properly. Please, somebody heeeeeelp! I am so stressed out by this! Thanks so much in advance, Steve

THIS is where the problems begin: I can't get it to work! Instead a 'shortcut' is made in the applications folder--to the dmg file which INSISTS on staying on the desktop--like it's a hard disk volume or something!
It is a mounted disk volume. Open the item on the desktop and drag the application inside to the Applications folder; if you see a brown package icon instead, double-click it and follow the onscreen directions.
(35582)

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