First to answer your question, you probably need to put "sudo" in front of your command so that it can run as root (administrator). Secondly, you're doing it wrong.

Installing the driver, that is. Well, ok, perhaps not "wrong" persay, but it will make your life a lot easier if you use a script like "envy" (sudo apt-get install envy) for installing graphics drivers called envy, or use ubuntu's restricted drivers manager (recommended) to install the drivers (System -> administration -> restricted drivers, or something like that).
If you really want, you CAN install that package you downloaded from the company's website, but that means that next time you do a kernel update, your graphics driver won't work and will have to be install the hard way from a recovery console... Just a warning.

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