OK, cool. I got everything up and running, I appreciate everyones help, I sure am glad I found this community, I thought nobody cared about FS2 anymore. I have been proven wrong.
Graphics wise, its clearly a big improvement over the Retail version. Ships now reflect sunlight, SOME bombers and fighters show the little guy in the cockpit, engine effects are nice and pretty for SOME fighters and bombers, there are more stars, warp-out effects are pretty, lasers and weapons look a lot nicer...overall a much needed set of upgrades. Thanks to everyone who made this possible for their hard work.
However, my game STILL doesn't look like the original screenshots. Much, much closer, but that cinimatic quality, like for example the shadows on the asteroids, is still missing, and the extremely detailed Deimos is also missing. My Deimos is definately upgraded and prettier looking, but still isn't quite up to that picture's standards. So, I'm now happy with my FS2 (still trying to get the damned FS1 Conversion Project running), but if there is anything else I can do too improve/add visual qualities I'd appreciate the input.