Error and invisible models

Hello.

I’m new to garry’s mod and these forums so I’m looking for any kind soul that can help me.
I’ve followed steps from http://www.facepunch.com/threads/550090 regarding addition of custom models.

The problem is that instead of the icon in the spawn menu I have ERROR in red and when I spawn the given model I can only hear that it’s fallen, also I am able to grab it with physi gun, but it’s completely invisible.

Also I’ve noticed a settings folder whenever I downloaded model packs.
Should I put these .txt files into garrysmod>garrysmod>settings>spawnlist or add folder named models and put them there.

Thank you in advance.