I downloaded Patch 1.7 and it is not a recognised file type so I can't run it, I can only unzip it and then it's just the contents of the patch but it's all unrecognised file types too.

How do I install this patch?

I did the same thing except it wasn't zipped. I just got the Fallout3_1.7_English_US[1]. I think it may of had a problem with one of the mirrors, which I had to download it from, because it says it is a 7_English_US[1] File type. I'm not sure, but try renaming it to something like Fallout3_1_7 or something like that. Don't put a period in it.