First of all, the current version is .205...you should stick to the latest. Romsets should be placed in MAME's 'roms' folder (or whatever you assigned as rompath in mame.ini)
Sets should be placed there in their archive form...so for example your_rompath\pacmania.zip pr your_rompath\pacmanania.7z. If you want them decompressed, use a subfolder in the romfolder named after the set, e.g. your_rompath\pacmania\pn_chr-0.bin and so on
Sets usually require files from other sets (parent/clone relationships, device sets, bios sets, so you need to ensure that you have all required sets, otherwise MAME will moan...but actually it tells you which file is missing.
Keeping a set collection up to date falls under the term rom management...
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