the source folder is your gamelocation (/home/user/MyDocs) for example when you've copied the game over in Mass Storage Mode.

and [webos] is just a custom folder in /home/user (the small 2GB partition) he used... I called mine preenv for example or just have the games without subfolders in /home/user/
for example /home/user/tetristouch or /home/user/hawx.

so whats the procedure in the save-space-tutorial...
simply:
-copy your games to MyDocs -> via Mass Storage Mode (because its faster)
-create a folder with game name in the 2GB partition of your beloved phone (/home/user/<your game dir> or /home/user/<any subdirectory>/<your game dir>)
-then copy over from game folder on MyDocs to /home/user/<your game dir> the 3 essential files for each game
appinfo.json, icon.png and the game "executable"

-put appinfo.json and icon.png always into the root of /home/user/<your game dir> and the game executable mostly goes into the subfolder (mostly having gamename) ->see orginial directory structure in MyDocs/<your game source folder>
-a few games have its start file in the root directory, too

my Need for Speed Undercover for example looks as following:
-/home/user/nfsuc
-----------------------/appinfo.json
-----------------------/icon.png
-----------------------/nfsuc (game start file)
-----------------------/res_nfsuc (symlinked to /home/user/MyDocs/nfsuc)
-----------------------------------/all the game files (but symlinks only pointing to /home/user/MyDocs/nfsuc/res_nfsuc)

and Asphalt5 looks this way;
-/home/user/asphalt5
-------------------------/appinfo.json
-------------------------/icon.png
-------------------------/Asphalt5 (folder with game files and executable)
-------------------------------------/Asphalt5 (executable - not symlinked)
-------------------------------------/all the game files (but all symlinked to /home/user/MyDocs/asphalt5/Asphalt5)

^^ clear ???

Greetz,

..::J4ZZ::..