This SimPE not only has support for Open for Business, it has a lot of other features and details, including support for SMD files (tested with XSI Modtool).

http://sims.ambertation.de/

When I tried to replace one of the submodels with an smd of my own, it imported great and showed up beautifully in the preview, but in BodyShop it is invisible. I've tried with and without applying a new uvmap, assigning the material file from 3DS max, and importing it as a 3DS file instead of SMD, but for some reason, the texture is not being applied to the mesh. I've looked, but can't find a tutorial for importing smd's into submodels using Skankyboy's SimPE plugin and 3DS Max. I know it's a little too soon for tutorials, but if somebody could give me some hints about what I'm doing wrong, I'd really appreciate it! Thanks!!!

Amy, there is a 3D Max thread that said something about some settings, and someone is working on a tutorial I believe:
http://www.modthesims2.com/showthread.php?t=141597
That's all I know. I've never used Max at all. I will try to give it a whirl, but there's only one me, lol.

Something bad with the mesh, I guess. All vertices assigned to a bone? Number of bones selected in importer is the same as in the mesh? You didn't altered the subset name, did you? (I assume that you did everything correct with linking recolor package to mesh package.)
Your object must have smdimportmtl material assigned when export from Max, otherwise it would be exported incorrectly; actually I had an exception in SimPE when trying to import such smd file. To set this material, use the dropper button (from Material Editor dialog) on the original obgect, then select your modified object and use Assign to selection button.
Ah, and I believe that you may not have additional objects in the scene when export from Max - only bones and smdimport object, which is your mesh. Bones can be hidden.
You should never do this. 3DS format cannot hold info about bone assignments, your sim would turn to moveless statue.
There's no much difference in importing with 1 or more subsets.
When you import an smd, you have 2 dialogs. In first, you select number of bones in your mesh (3 or 4 - AFAIK 4 is for Nightlife meshes, don't know for sure since don't have it), path to morph file(s), and checkmark for Bump Normals (by the way, bumpmaps do work! even on my new groups! even if I export, correct and import a mesh I did earlier ).
In the second dialog, look to the right - 2 comboboxes there; in first you should choose Replace (Add is there by default), in second - name of subset to be replaced.
Don't forget to commit

Thanks! I'll keep working on it. I did figure out about replacing the subgroups, but I'm still having trouble with it being invisible in Body shop. I've exported it as SMD (referenced, not skeletal) and all the bone assignments are still there. The material shows up in Max, so I assume it is attached. I will go back and makes sure I didn't change the names... I may have but I've been working on this mesh for so long, I don't remember WHAT I've done to it, to tell you the truth. I have been able to successfully import regular meshes into the game, so at least I can do *something*! Thanks for all your advice. I'll let you know what I did wrong whenever I find out, so maybe it will help somebody else out there.

the SimPE site is not working for me

Then you'll have to try again later, we have no control over what is happening at simpe's site.

its ok-never mind

Is there a tutorial that comes with it that shows me how to use it? (Example. Recolouring, what I use to recolour)

I can't seem to get any of the FAQ links to work. (Esp the one regarding tutorials.) I keep getting a 404 error message. Any idea where I can find a tutorial?

Where? on the SimPE site? They were down, perhaps not everything was restored. There's tutorials for recoloring here at mts2 - go to "create - object" and you'll find them. Recoloring Objects with Object Workshop is a good candidate.

There's a LOT... a LOT.... that can be done with simpe, so the best bet is to look around for a tutorial that describes the specific thing you might want to do.

The thing I most want to do, is alter all of my neighbors in a custom neighborhood, so that all of the NPC/townies are wearing Victorian clothes!

But I'm not quite skilled enough to do that, yet.

Well, I also want to be able to hack into their personality and skills so I can do more of the storytelling aspect of the game, than to constantly build up their cooking, mechanical, etc.

I'm not even sure how to phrase this to do a search for it.

I'd love to learn how to do an object recolor, too, but as I don't have Photoshop, I don't think I can.

Simpress.... there's a recently released NPC replacer at http://www.simwardrobe.com/

If you want to hack skills, there's the multipainting on site and other items that make do such things easy. http://www.modthesims2.com/showthread.php?t=30927

And you can do recolors with any decent image editing program, GIMP is free
http://www.gimp.org/

Tiggerypum, I could kiss you!!!! Thank you sooo much!! ::does happy dance::

Is it just me, or is the link for SimWardrobe's NPC Replacer not working? It appears to be looped to the home page and is not downloadable. Let me know if it's just me.

I didn't try it, but you should contact them, we've gotten way off topic for this thread.