I'm Steam user running Windows 7 64 bit OS. Aniway, here is how I did it and therefore suggest you to do the following:
1) install SH3 via Steam;
2) launch the game once then exit;
3) install GWXFullSingleInstall that you can download from the link provided in jimbuna's sig over here at subsim.com into the same place where SH3 main folder is located in Steam (for me it's D:\Program Files (x86)\Steam\steamapps\common\Silent Hunter 3);
4) launch the game;
5) enjoy the game.
Oh and BTW, I went into Steam Library, went into properties of SH3, SH4 and SH4 U-boat Missions (for some reason Steam sees it as two different games) and set them all to "do not automatically update". So far both GWX and TMO work just fine for me.
About offline mode. At first I had difficulties with it, but then I managed to sort them out and both games now work in offline mode.
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