Well he is saying both Decrapped and merge package form. I am thinking he is using it as both Sims 3 pack and package, which at best sounds illogical. Then again if he is using a decrapped package, then it wouldn't go too well anyhow as you shouldn't really need to decrap it in package form.
You have to decrap the sim3pack before extracting packages to merge. Otherwise s3pe won't read the files because the program picks up that it is a store file and you can't merge the files together. I do not run content in the launcher not even worlds. I thought everybody did it this way.
I use ccmerge file from nonasims's site my original corrupted. I do put this file the override folder.
http://nonasims.wordpress.com/2012/05/17/dcbackup-ccmerged-package-and-your-premium-content-items/I did see the balloons in the debug buy section looking alright except for one. It had one version okay and a duplicate which was
black ball, the table block was also a black ball.
I think your right about a corrupt install. I don't think it would work to re-download and run in package form again. I've tried it
before with problematic PC content. Would it help if I installed it in the launcher? The launcher is problematic for me and I
try and use it as little as possible.