By Root Folder it doesn't mean a folder with the name root. You need to copy the MIUIrom folder to your internal 4gb storage but not inside any folder.
Guys We know there has been CM & AOSP for us and recently MIUI has launched MIUI V5 rom based on KITKAT. Now i am trying to port MIUI Rom from Redmi 1s. Will update you guys about the progress in coming days.
Wish me a luck guys.