ok i created the Mods/Packages folders in "The Sims 3" folder, copied the "Resource.cfg" file there, and also copied the "d3dx9_31.dll" file to the "Game/Bin" folder but the game still won't see custom content.
I experimented in Windows 7 to see if there were and requirements for the dll file to work by uninstalling some windows features to see if it would stop working and it did. There is obviously something required to be installed to make this work but I have no clue what. I will continue to experiment in windows to see if I can figure out exactly what it needs and then maybe someone would be able to help me fix it.