QA:Mac 101
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Answers to common questions that really shouldn't have to be answered by Camino support/QA but nonetheless are asked too often....
Installing An Application From A Disk Image
The problem is that you didn't install Camino on your hard drive. The .dmg file you download is a compressed disk image. Double clicking it mounts a virtual "disk" (looks like a white hard drive), which contains the Camino application (and a read me and release notes). Drag that application into your applications folder (or any other folder on your hard drive) to install it. You may then eject the image, throw away the original .dmg file, and add Camino do your dock if you wish.