First of all, you should have your games installed outside the system protected Program Files (x86) directory. Propbeanie has a root directory called Ubisoft. You can have Steam install games anywhere you want and that's change #1 that you need.
Second, JSGME warns you any time when you are overwriting a file already in a previously installed mod. RSRDC steamrollers TMO, leaving it mostly overwritten and you are playing something very different from TMO when you install it. JSGME is alerting you that things that TMO modified before are being removed/replaced by RSRDC and that's how RSRDC is supposed to work (unfortunately). In other circumstances it might be a problem, but you want RSRDC so just let 'er rip.
Make sure your install order is
TMO
Small patch
RSRDC
RSRDC patch
Those two changes should fix your problem. Keep us posted!
Afterthought: how much RAM do you have? Have you enabled the 4GB aware patch to SH4?
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