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Extract the "v_hands.vtf" file to:

C:\Program Files\Valve\Steam\SteamApps\<yourusername>\counter-strike source\cstrike\materials\models\weapons\v_models\hands

If you dont have one of the folders simply make it by right 
clicking in the folder window and selecting New > Folder 
then rename it to be EXACTLY the same as showen in the readme file.