OK I have the file. Just to avoid any confusion it is from the CFS1 section. May I suggest that in future a link to the page rather than the file itself would be more useful.
Right. First I downloaded Bf-109E-8Molders.zip to my C:\FS Downloads folder.
Using the right-click WinZip option I extracted it to the same FS Downloads folder.
It automatically extracted the zipfile to a new folder named Bf-109E-8Molders.
This is what you should see if you open that folder.
Note there are 3 folders named Bf-109E-8Molders - each inside the previous one like a set of Russian dolls.
The 3rd one in is the folder you're looking for, the folder
directly containing the Model, Panel, Sound & Texture subfolders.
This is the folder to paste into CFS1\Aircraft. It has its own panel & the sound is aliased to the default Bf109e. There are no extra gauges to worry about. Providing the default Bf109e is installed to your own CFS1 & you haven't renamed the default folder or otherwise modified it there is no reason this new aircraft will not display in CFS1. It's listed on the menu as Bf-109E-8 Molders.
I suggest you delete the folder you installed & try again following my instructions. I don't have CFS1 installed right now so I realiased the sound & tried it in CFS2. It works fine. If you still have problems let me know & I will install CFS1 to check it out in that.
PS. The number of folders you get will vary depending on the method you use to unzip the file. If you use my method you should see 3 as in my shot. The number of duplicate folders is not important providing you know what to look for & install the correct one. This folder being hidden inside another one (or more than one in this case) is one of the most common reasons for 3rd party aircraft not displaying in all the M$ sims.