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Sim extraction tutorial with pictures:
https://pixel-trade.livejournal.com/16091.html
(and a bit less misinformation/confusion, maybe. Just make sure to clone the sims in Bodyshop, remove the original extracted files before starting up your game, and you're good.)
Two good reasons to clone the sim in Bodyshop is that the original extracted sim has a lot of attached info that could cause problems if you try to pop that sim into any neighborhood as-is, but the clone doesn't have any of this. The second reason is that the original extract doesn't get any CC included if you try to package them, but the clone does.