Actually BMF and Leprechaun, I don't think you did anything wrong. I actually had to a little bit of re-writing to get the thing to work. It all hinges on your dll.xml file. It tells FSX what "add-ons" to use. Try this:
Make sure you can view "hidden files".
Go to C:\Documents and Settings\"Owner"\Application Data\Microsoft\FSX
In there you will see the dll.xml file.
Make a copy if it and save it to your desktop. This way if something goes wrong later you can fix it.
Right-click on the original and open it with Wordpad.
You will see something like this:
<?xml version="1.0" encoding="Windows-1252"?>
<SimBase.Document Type="Launch" version="1,0">
<Descr>Launch</Descr>
<Filename>dll.xml</Filename>
<Disabled>False</Disabled>
<Launch.ManualLoad>False</Launch.ManualLoad>
<Launch.Addon>
<Name>Object Placement Tool</Name>
<Disabled>False</Disabled>
<ManualLoad>False</ManualLoad>
<Path>..\Microsoft Flight Simulator X SDK\SDK\Mission Creation Kit\object_placement.dll</Path>
</Launch.Addon>
<Launch.Addon>
<Name>Traffic Toolbox</Name>
<Disabled>False</Disabled>
<ManualLoad>False</ManualLoad>
<Path>..\Microsoft Flight Simulator X SDK\SDK\Environment Kit\Traffic Toolbox SDK\traffictoolbox.dll</Path>
</Launch.Addon>
<Launch.Addon>
<Name>Visual Effects Tool</Name>
<Disabled>False</Disabled>
<ManualLoad>False</ManualLoad>
<Path>..\Microsoft Flight Simulator X SDK\SDK\Environment Kit\Special Effects SDK\visualfxtool.dll</Path>
</Launch.Addon>
<Launch.Addon><Name>FS Recorder Module</Name><Disabled>False</Disabled><ManualLoad>False</ManualLoad><Path>C:\Program Files\FS Recorder for FSX\RecorderFSX.dll</Path></Launch.Addon></SimBase.Document>
In fact you should see exactly that. So, having made a backup copy of the dll.xml to your desktop, Cut and Paste the text above to replace the text in the original dll.xml. Save it and close it out. Then go fly in FSX and see if you get the "Tools" option.
If not, replace the copy of the original dll.xml that you have on your desktop back into its original folder.
Disclaimer: I'm not a "computer guy", just a guy who spends A LOT of time in hotels.