What to do with .dmg files after downloading

I am somewhat new to OS X (however not new to Mac), so this may seem like a dumb question...
After I download an application, plug-in whatever, I have a .dmg file and another icon that looks like a hard drive on my desktop. I know that these are the installer files, but what do I do with them after I install something?
I have been "ejecting" the one that looks like a hard drive, and the other with the .dmg extention I've put in the trash. I put the applications I downloaded and other misc. like the "read me" files together in a folder in the Applications part of the finder.
Is this right? I feel so silly for asking...
Thank You,
akhock
iMac Intel   Mac OS X (10.4.7)  

Hi
You're doing it right, however: Depending on the application I find it unnecessary to put non-essential files in the Application folder. It is often enough just to put the actual app in the Apps folder. If you archive the .dmg file in a downloads/installers folder in your Home folder, as I do, then you can always access the other misc. files again if ever necessary. It's neater that way, and when the latter folder becomes large I just burn it to disc, file it away somewhere and empty the folder to clear space.
Matthew Whiting

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