@ Angel -
Firstly, put your graphicsrule.file back in! Or even better, if you had backed up the original file before you installed the Sclub HQ mod, then put that one back in.
You then need to extract the entire zip file to a new folder. You'll then see that there's an exe file called S3HQ.exe. Double click it, click the "on" button and then select the file size/texture size of the HQ mod by dragging the bar up and down. After that, click ok and it will turn on the HQ mod. :)
Second edit to add pictures:
http://farm8.staticflickr.com/7301/9513255726_a43596b9f4_o.png
http://farm3.staticflickr.com/2873/9513255794_84a4657ba5_o.png
