PGF and TikZ -- Graphic systems for TeX

I installed Miktex2.7 through Protext2.1. I wanted to update my pgf package to 2.0. The .tar file is only available in sourceforge and no other repository.

The installation instruction in the manual are slightly outdated as Miktex2.7 onwards, there will be no texmf folder.

Following Kjell Magne Fauske advice, I tried to update to pgf2.o version by making a local directory c:\mytexmf\tex...
Then using Miktex->settings->Root to include in root path. Then I used the Miktex->settings->General->Refresh FNDB to refresh the database. Now my question is:

1. How do I test whether this package has been added? --> with the crude tests I did, I find the package is not added.
2. What is the right way of adding a package to Miktex2.7, when the package has still not been added to the remote repository.

Thanks

Umesh