It is quite safe to delete all the content of My Documents/EA games/The Sims 2/Thumbnails as ekozski said and also the files called accessory cache, cigen.package, content registry and groups.cache. The game will create them all at the next startup. Don't worry if you don't have some of the files in your game, just delete the ones you have.
It's part of the Insimenator, cannot be downloaded separately. As long as you have InSim installed you just go to 'spawn' then click on 'career adjustor'. A variety of options will show up, including one (or several?) for modifying badges.
Over at S2C there are a few threads dedicated to this hack and its compatibility with Freetime... many people are reporting it works, others say there is an issue with community lots.
I would guess that whoever packaged the lot forgot to include the terrain paint. According to Sims2wiki missing terrain paint is what causes the ground to flash blue in a pre-packaged lot. Contact the person who uploaded the lot and tell them. The lot looks pretty huge, it would probably have been easy for the creator to have overlooked including a few things.
I really appreciate your hard work and God knows I couldn't mesh to save my life but ...there seems to be a conflict in my game with this hair and Raon's male hair 17 which became really weird and gappy after I installed your alpha edit.