OK I will try to do this step by step.
Get the JSGME if you don't have it already "
Generic Mod Enabler " http://www.users.on.net/~jscones/software/products.html
Run the EXE INSIDE your MAIN SH4 folder, it should create a "MODS" folder, if not install again (should do it at 1st try normally)
Put any mods you want (in this case the 360 bearing mod) into the "MODS" folder
and hit JSGME.exe (I have a shortcut in my Start menu) and you should see all mods you dumped in the "MODS" folder now just hit the "ADD" button in the interface and see how the stuff gets loaded in to the right window, when you loaded the mods you want, close. Now all should work as it should.
This a pic from my SH3 JSGME folder as an example
