I just started messing around with modding this game (i've never tried to mod a game before this one)

For some reason my changes for the terran alliance won't show up in my modded game. I've successfully changed all the other races to star trek races, but for some reason.. those dang terrans don't want to become the federation!
(( the changes i'm referring to are in the RaceConfigXML file, which i'm editing in dreamweaver))

Has anyone else run into this problem?

Also, I don't even know if i'm going about the whole modding thing right.. I don't see a "mod" folder which i've often read references to. I basically copied the whole game to another folder and started modding it. Is this how i should do it?

All responses are greatly appreciated!