NewSoftSerial

I downloaded the NewSoftSerial and extracted it, how do I get the software to recognize it?

Assuming you extracted it to the proper place (inside a folder called library inside your arduino sketch directory) you just have to add a line a #include statement at the top of your sketch like this example sketch which is included in the same library:

#include <NewSoftSerial.h>
NewSoftSerial mySerial(2, 3);

void setup()  
{
  Serial.begin(57600);
  Serial.println("Goodnight moon!");

  // set the data rate for the NewSoftSerial port
  mySerial.begin(4800);
  mySerial.println("Hello, world?");
}

void loop()                     // run over and over again
{

  if (mySerial.available()) {
      Serial.print((char)mySerial.read());
  }
  if (Serial.available()) {
      mySerial.print((char)Serial.read());
  }
}

Lefty

I did extract it to the right place and still it is not recognize.

You likely need to restart your IDE