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Open your Railworks folder
Look for the Utilities.exe. Open it.
Select the Package Manager tab.
Press the Install button. Select the rwp file you want to install. Press Open and in the next screen (with all files to be installed) press OK.
Your Train Simulator will install and refresh.
Done!!!
https://www.youtube.com/watch?v=pT0_924UICM
If you are a Spanish speaking user:
https://www.youtube.com/watch?v=RKMV5VlsiJU
Make a search from "This PC".
Check this path:
...\Steam\steamapps\common\RailWorks
The three dots ... is where you have Steam installed.
Just dig in Program Files (x86) ----> \Steam\steamapps\common\RailWorks
Railworks contains all your Train Simulator Classic files and folders.
You can also create a shortcut of Utiilities.exe in the desktop.
If you don´t know how to do that, go to YouTube and search for how to create a shortcut.
Not too sure what you mean by saying 'but do I always have to use Utillies to download or is it not always used?' You download mods either via Steam's TSC Store page or the third party mods website where you found that particular mod. Then once unzipped on your PC, read the text file install instructions.