The / means that it is a directory.
/ is the "root" of the Linux filesystem. It is the root folder in which all other folders are contained.
So, /etc is a folder or directory in the root of your drive. Further, /etc/apt/ is a folder within /etc.
In that folder is a file called sources.lst. This is the file you must edit.
In the main menu go to Applications --> Accessories and click Terminal.
Type "gksudo gedit /etc/apt/sources.list" (without the quotes).
This will ask for your password. The gksudo means that Ubuntu will open a window to ask for a password that will allow you administrative privileges to edit the file.
When the editor is open, choose Save As.. and save the file as sources.lst_bak so that you have a backup just in case.
Then go to the end of the file and paste the deb http://ppa.launchpad.net/c-korn/vlc/ubun… jaunty main line.
Save the file as sources.lst and close the editor (gedit).
Now in the terminal type "sudo apt-get update" (no quotes in terminal).
This will update the list of repositories you can access and add the repository you just added to the sources.lst.
Now follow the rest of the instructions.
Also, you can go to System--> Administration--> Synaptics and use that graphical application to add sources and install applications.