Did you install sh3 inside the program files folder??
If you did then thats your problem, folder permissions (vista/7) will prevent jsgme from altering stuff within the program files directory, simple fix is to install sh3 to c:\dasboot or something like that, as long as its outside of the program files folder it`ll be fine.
+also as already stated, check the mods file structure to make sure its jsgme ready.
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