When I load the game up, the custom content should be displayed automatically. Is this correct? When I turn the game on, it just acts as if nothing was changed about it. I currently only have the base game installed, because I want to see if this works before I install all the expansion/stuff packs. I am using the original discs, specifically the Sims 2 Holiday Edition. Is the downloads folder in the right place? Did I check the right settings? Thank you, any help is appreciated.

You should put your downloads in
C:\Users\USERNAME\Documents\EA Games\The Sims 2\Downloads
or (if you have the UC)
C:\Users\USERNAME\Documents\EA Games\The Sims™ 2 Ultimate Collection\Downloads

You shouldn't put your CC in with the ProgramFiles - that's the installation location, and the game doesn't read downloads from there unless in special cases (if files are supposed to go there, you'll be told to put files in certain folders, but not in a "downloads" folder).

Your downloads folder is in the wrong place. It needs to be in the Sims 2 folder that's in Documents

Thank you very much! This worked