********************WHOEVER COMES, IN READ HERE*******************
(The "Manual" from the wiki and all of these users might confuse you)
Ok I did it.............I'm going to explain this VERY EXPLICITLY SO THAT THERE IS NO MORE CONFUSION
Download this "Makepak & Extractor" from the link under this sentence. (Courtesy of spidermax96) for providing the link
http://www.theisozone.com/downloads/pc/other/makepak-extractor/
TO CONVERT A GAME TO .PAK
Make a game (Like Streets of Rage XXX) into a Pak file, place the "Data" folder (From the game) and the "makepack.bat" in the same folder (meaning DON'T put "makepack.bat" IN "Data" folder) and all you have to do is press "makepack.bat" for the process to start. When finished, your file should appear in the same folder where you placed "makepack.dat" and "Data" under the name of "bor.pak
TO EXTRACT A "PAK" OF A GAME DOWN TO ITS "DATA" FOLDER
Simply take the pak file and drag it to the "borpak.exe" which will start its process. When done there should be a "data" folder in the same area as the "borpak.exe"
This works for Windows 7
Idk about Windows 8 but I'm pretty sure it does
As for "PLAYING A PAXLOADED PAK" I'm not too sure about this since I didn't need to use this but..........I think this means How to play the game in it's extracted "data" form. (Such as when you "un-Pak" the single ".Pak" file of the game using the "borpak.exe")
ACCORDING TO BeasTie:
"The right way to play extracted mod is to have openbor.exe outside of data dir and add dummy .PAK file to PAKS folder.
The dummy file is just a text file renamed MOD.PAK or whatever you want, make sure it's .pak extension thou."