If I set flag to 0x00000010, version to 0x00000003 and product to 0x00000000, the clothes show up, but with a CC star (which is unacceptable to by OCD).
AFAIR, product for Base Game is 0x01.
http://www.sims2wiki.info/wiki.php?title=2C1FD8A1#versionSetting the flag right is for some reason essential for correct townification.
From what I've seen, it seems that only the last bit matters. Outfits with flag 0x000000X0 are townie-enabled, while outfits with flag 0x000000X8 are townie-disabled.
TSstore outfits have flag 0x00000000, version 0x00000006, product 0x0000000D, no CC-star (or other EP mark) and do work for YA, but appear in front of all other EPs in the catalogue, not at the end where the base game outfits should go.
Now that Store Edition is treated like the newest (and the last) SP for TS2, it makes sense that they appear in front of all other EPs in the catalogue.
I understand that dumping the files in "\TSData\Res\Catalog\Bins" or some such like will take away the star
No. Unlike objects or OBJD overrides, AFAIK Star of Shame has nothing to do with the location of Property Set overrides. It's about disabling the delete button in the cataloge. If you don't mind the delete button enabled, they work just fine in Downloads folder.