Status report error

I installed the Hierarchical Select Module into the Module directory after checking off Hierarchical Select and Hierarchical Select for Subgroups I receive a message to check the status report.

Hierarchical Select Modules incorrectly installed!
The following modules implement Hierarchical Select module for Drupal core modules, but are installed in the wrong location. They're installed in core's modules directory, but should be installed in either the sites/all/modules directory or a sites/yoursite.com/modules directory:
Hierarchical Select Menu
Hierarchical Select Taxonomy

Can someone please help me out here?

Henry