Hmmm... :scratch:
Try moving your Downloads folder completely out of your "C:\My Documents\EA GAMES\The Sims 2" directory (like dragging and dropping the folder onto your desktop), delete your "Groups.cache" and "Accesory.cache" files, and run the game once. Then after the game finishes loading, close it out, put the Downloads folder back into The Sims 2 folder, and try running the game again. If it still doesn't work, you might want to double check your settings again... :angel:
(I had this happen once... doing the above seemed to help.

)