SH3 is different in some aspects from SH4, but Ducimus had a post / thread a while back that might give you an idea or two:
Adjusting the AI - cliff notes version - it's for SH4, remember, and some of the file names will be different, and some settings will be completely missing... I remember something like this for SH3 many many moons ago (Ducimus again??), but could not find it.