OS X Lion 10.7 - How to install Application - No Application Folder?

OK, I'm a total Mac newbie, so forgive what may be an ultra-basic question.

I just bought a Mac Book Air and am installing a VPN program from the web.  The instructions are to drag the .DMG file onto the "Applications Folder" for it to install, but I do not have one (that I can find).  I don't know if it was replaced by the app store icon, but I have finder, launchpad, app store, etc.

If I just click on the DMG to run it, it refuses and comes up with a window illustrating that I need to drag the DMG to the Applications folder to install.

Any help would be greatly appreciated!

Thanks
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drgdrgAsked:
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strungConnect With a Mentor Commented:
Open any finder window, then in finder pull down the Finder Menu to Finder Preferences.
Click on the Sidebar Tab. Make sure the "Applications" box is ticked.
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strungCommented:
Your application folder should show up in the sidebar of any finder window.

You can also type "applications" into the Spotlight window.

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drgdrgAuthor Commented:
> Your application folder should show up in the sidebar of any finder window.
> You can also type "applications" into the Spotlight window.

I've tried this.  It shows up under "Favorites" but I think that is a virtual link, not a physical folder, correct?  In any event, when I drag onto it I get "The operation can't be completd because an unexpected error occurred (error code 0)

>Open any finder window, then in finder pull down the Finder Menu to Finder Preferences.
>Click on the Sidebar Tab. Make sure the "Applications" box is ticked.

It is already checked.  I just can't drag onto it (as discussed above)

In the instructions for the install program, it refers to the Applications folder as a blue folder with an "A" on it (similar looking to the App store A), resembling the "Utilities" folder

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strungCommented:
Double click on the Applications folder in the sidebar of your finder window and it should open. Then drag the application into the open folder.
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drgdrgAuthor Commented:
Thanks.  Re-downloaded, followed this step and it placed the file in the applications folder (did not install).  I was then able to double-click to install.

The install program came up with a visual instruction to move the file to the applications folder, but just double clicking on it again, inside the warning, caused it to install.

Thanks
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