Dwyersp , i suggest dont effort too much for FBA because its unstable , i have try some of the game, it will crash and back to menu, or blank screen after few minute playing . focus on mame2010/0139 work more roms on the net then mame078. and very stable.
no, you dont need to extract the bios zip file.
Street Fighter III especially cannot run on this all available mame , even mame2010 just freeze, on fba its run but only give you afew minute then goes blank. mame works fine beside Street Fighter III, try alpha and Capcom vs. Marvel it work fine, you just need to find the rom that met the mame romset.
on mame beside the roms file you need qsound and put it on roms folder.