Ok, I re-installed the mod into the mod folder as I should. I then loaded the mod in the game, still no Israel. But, I went ahead and chose another civ to play in the Israel mod. When the game loaded to the playing screen a message popped up that read...
"XML Error-
Tag:LEADER_BEN_GURION in info class was incorrect
Current XML file is: xml\Gameinfo/CIV4DiplomacyInfos.xml"
It also had the same error for David and Solomon pop up.
Any suggestions?
I GOT IT TO WORK!

I believe it was a combination of things.
First - When I downloaded the zip file I needed to "extract" the files from winzip to a separate folder, rather than "select all and drag". I believe "extracting" organizes the files into the proper folders.
Second - After I had made sure the mod was in the proper Beyondthesword/mod folder I checked the ini file and it had no option to change the "modular xml". Until... after I had tried to load the mod once in the game, then after this I went back to the Israel mod folder and checked the ini. file again. This time I had the option to change the "modular xml loading" from "0" to "1". I don't know why "modular xml" did not show up the first time in the ini. file.
So all is well now! Whew
