You're off by quite a bit.
Step 1: Turn off phone with long press until three vibrations.
Step 2: Clear your rm596 folder and unzip the archive into the folder again.
Step 3: Kill all antivirus/malware software until it no longer resuscitates in the program manager's process list (Ctrl+Alt+Del)
Step 4: Open Phoenix, open product
Step 5: Flashing > Firmware update
Step 6: Product code 0598984, dead USB flash, no options ticked (no downgrade, etc)
Step 7: Start flash via Refurbish (phone is not connected to PC yet)
(At this screen, insert the USB cable and click OK)
Step 8: Wait for the flash to finish...
...and then disconnect and boot your phone. (Yes, i just downgraded the N8 to S^3
)