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I installed SHIV into a stand alone folder called GAMES on the hardrive outside of the x86 folder. I've installed JSGME into that GAMES folder. I created a MODS folder in the GAMES folder as well and extracted the mods into it. I then ran JSGME to install them and it said they were activated properly. I did all of this before running the game so I had nothing to go on as to whether it was working but as I've played, I've been coming to the realization it wasn't working.
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It is great up to the part of your mods folder you created for the JSGME. This mods folder needs to be inside the SH4 main folder. As stated in my previous post. Extract the JSGME program right the SH4 main folder. Once done click the JSGEM .exe to install. Then, create your MODS folder inside the SH4 main folder. Simply right click scroll to NEW then FOLDER. Name it MODS(all caps) Extract all you mods to this fold! I keep the JSGME icon inside the main SH4 folder as well. Just more organized for me and I know it works when I do this.
When I extract mods I navigate to the MODS folder inside the SH4 main folder where I created the MODS folder. Once done, I navigate to the SH4 main folder and double click the JSGME icon to activate the mods. Close out JSGME when the mods are done activating and then close the SH4 main folder. Start your game.