Sorry to say nothing has worked... and Im not the only one. A shame, Im sure the modcom has done an amazing job.
Let me put this out there for folks thinking of buying SH3 on Steam for the purposes of modding: DO NOT, unless you have nothing better to do with your time and dont mind wasting the $, or dont mind playing unmodded SH3. Its still a great game stock.
There is a very strong chance that it is IMPOSSIBLE to get LSH or Commander to work on your Steam copy of SH3.