Hello, I was lucky enough to receive a computer capable of playing Fallout 3 at a fantastic frame rate and graphics level. I used to test out mods for Oblivion on my older laptop that could only function as a testhub for modding so i have some background but ive forgotten alot. Here are some of my questions, If you could answer them I would be very happy thank you!

1. Can someone link me a website on how to install mods? I
2. I downloaded FOMM and remember something about downloading mods that were already in FOMM packages, is this correct?
3. How do i join Windows Live and does it connect with my Xbox Live account?
4. Where can i download the official patches?
5. How do i use FOMM?
6. Are these mods extracted into Fallout 3's folder or are they self contained when i extract them?
7. How do install/use Fallout Script Extender?

Any other helpful tips are appreciated.

Google is your friend > http://www.google.com

Any other answers or direction?

http://www.gamesas.com/index.php?/topic/972878-fallout-3-mods-faq/

THIS is very helpful FAQ for most of your questions.
Windows Live is of the devil. my opinion of course, but I have the delusion as others, it causes CTDs on some systems and increases game startup times
I think the mod "Little Boy" has a way of taking care of that.

http://www.fallout3nexus.com/downloads/file.php?id=2094

Else google "fallout 3" Windows Live disabler

FOSE disables Live automatically, so no other third party software is needed for that.

1. The FAQ details how to download and install mods. Most seem to be hosted at the http://www.fallout3nexus.com/.
2. Some mods are packaged in a FOMM format and need FOMM to install them, but not all are.
3. There should be an option to join Windows Live from the main menu after the launcher (the one that allows you to load a saved game or start a new one).
4. If you have the Game of the Year edition, you don't need any patches. Otherwise go to http://www.gamesas.com/eng/downloads.php#f3patch. You'll need to verify your age to get the patches and the latest is 1.07 (GotY is 1.08).
5. FOMM has a readme that walks through all of its features. I'm sorry, but there are too many features in FOMM to go into all of them. It's good for changing system settings (HDR, Bloom, resolution, etc.), managing load order, and installing FOMM archived mods. But I think most of its features are for modders and not mod users. Still, it's worthwhile learning how to use. Just be careful that you don't break your mods - always use a copy when possible.
6. Each mod is different. FOMM style mods are a single FOMM archive that automatically extract themselves properly when you activate them. Other mods *should* have detailed installation instructions in their readme. If it doesn't, don't use the mod. An author who doesn't feel the need to include proper instructions or feels that everybody in the community should already magically know how to install a mod might not spend the proper amount of time quality testing their mod.
7. Install the .exe and .dll files directly into the main Fallout 3 folder (not the DATA folder!) and use the fose_loader.exe to launch FO3. Note that running FOSE will disable Windows Live; the two will not work properly together.

Great help Jac thank you, I assume most of my troubles result from using Windows 7 which is not letting me be an administrator on my own PC. However i have one more question, I run the Updater after downloading the patch and it tells me that "the ordinal 5360 could not be located in the dynamic link library xlive.dll." i have tried many different things but nothing seems to work

if you installed to the Program Files (x86) folder, uninstall & install somewhere else. Try the patch again after that provided you don't already have the Game of the Year version. For some reason, Windows 7 will not give any program that's in the (x86) folder proper access to the system unless you turn off User Account Control (UAC). I recommend leaving UAC on and just not using that folder for program (like games) that need greater system access. That way I can have them run as administrator and in compatibility mode as well.

Yep... install to, say, C:\games\Bethesda ... you'll have to create the folders yourself.

AFAIK that ordinal thing is a fairly common problem- search in the PC tech issues forum for solutions.

I will reiterate that GFWL will probably cause problems if you want to use mods. FOSE will automatically bypass it but I don't think it moves the DLC files to the FO3 directory. You can do that manually or use http://www.fallout3nexus.com/downloads/file.php?id=1086.

Some mods come already packaged as FOMODs, some come with a FOMOD ready script and some are just files/folders in an archive. The latter 2 can be made into a FOMOD from within FOMM. You need to read the FOMM documentation to get a feel for it.

Tip: when creating a FOMOD that doesn't have a script, know that .esp and .esm files go into the \Data folder while textures, meshes etc go into their respective folders within \Data... ex \Data\Textures. These must be arranged manually before creating the FOMOD- a FOMOD applies the folder structure that was present before creation directly to \Data.

Properly applying mods and using the mod tools takes a bit of research/reading (read readmes thoroughly)... but it's worth it!

Edit: What version of FO3 do you have? GOTY or original?