the tutorial doesn't really cover this, so i need to ask, how do you select output directories?

i have 2 icons, saved as pcx, named mediicon 0000.pcx and mediuico 0000.pcx, and im trying to convert them to shp

Start XCC Mixer.
Navigate to the directory where you've just saved the icon.
Select the output directory.
Convert the icon to shp (ts).

how do i select the output directory, and do i hit copy as shp for the convert to shp part? cuz it's confusing, there is no output directory or convert to shp options