what to do about configure.php when upgrading

I have uploaded 1.3.7. to overwrite 1.3.5.
The shop looks the same as before, so overrides are working.

I have not overwritten the 1.3.5 'admin' folder, which was renamed to 7***5 for security.
I have uploaded the 1.3.7 admin folder, but this doesnt have a configure.php in it.

At the moment, I have got 2 folders on the server.
7***5 ((renamed from 1.3.5 'admin')
admin (simply uploaded from the zip 1.3.7)

Should I

1. delete my old admin (renamed to 75 for security)
   then rename 1.3.7. 'admin' to '75' on my computer and overwrite the server files,
   or
2. rename 1.3.7,admin' to '75' on my computer,
   then upload and overwrite the existing '75'

I am asking because the 1.3.7 'admin' is raw, and will presumably not have the necessary files like configure.php on it, so may not work.
Hope someone can clear this up for me
thanks

oh well
I went ahead with option 1 anyway with fingers crossed.
It seems to work intact.
Now to sort out the datbase upgrade error message.
sigh
is there no end to it?