Download and decompress the archive and don't modify nothing in there.
Copy the folder "custom" and paste it in "SteamApps\common\Counter-Strike Source\cstrike".
Choose your options from either "Option 1 - With Lam" or "Option 2 - Without Lam" and paste the folder "custom" from each in "SteamApps\common\Counter-Strike Source\cstrike".
Play!
Note:
All are working just great, view models offline/online and world models offline/online, all are visible and working.