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Make sure you're working in the correct directory tree, as well.
If you are on a Windows 7 or Windows Vista machine, the correct path is normally [ C: > Users > Public > Games > World of Warcraft > Interface > AddOns ] -- on a Windows XP box it is normally [ C: > Program Files > World of Warcraft > Interface > AddOns ]
Inside the ZIP you downloaded is a single [ nUI ] folder. You need to copy that into the [ World of Warcraft > Interface > AddOns ] folder. You don't put the ZIP file (nUI_5.06.07.zip) itself into the WoW folder and you don't put the ZIP folder (nUI_5.06.07) in the WoW folder. When you're done, you should have a [ World of Warcraft > Interface > AddOns > nUI ] folder... anything other than that is wrong.
One further note: make sure you do not use the Curse Client to update nUI+ -- it will break it.
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