After reading all the FAQs, i still cant seem to get my modules to load correctly. Maybe im just an idiot. Could someone please give me a better, more in depth explanation?
Any info would be greatly appreciated.

What are you trying to load?

just any module, i dont really understand fully how to change the step.rc if u could explain it more in depth that would be awesome!

Well first off if you are trying to edit a step.rc then you have ots1 version of litestep. You should scrap ots1 and move to ots2 version.
Get it here
http://www.litestep.net/download.php?mod=79,module

To load a module in the new version you must know what module you want to load.
http://loose-screws.com/modules.php?cat=0
Here is the place to get modules.
OTS2 has a theme.rc not a step.rc
In OTS1 to load a module you do
*LoadModule "$ModulesDir$popup2.dll"
you will need to define your settings for popup2 in the step.rc or you can place the settings for popup in another file and do what they call an include in the step.rc
Include "$ConfigDir$popup2.rc"
This works the same in OTS2 however OTS2 has a download manager called netloadmodule which goes out on the web and downloads the modules needed automaticly.
So to load a module with ots2 themes it would be
*NetLoadModule popup2-2.0
Notice there is no .dll and there is now a version of the module at the end.
The best thing to do when you are new to this is look at other themes and try and figure out how they did it.
If you move to OTS2 dont make the mistake of adding
popup2-[1].2.0 open and close brackets around the module name. Even if it arrives on your desktop after downloading it that way.
OTS2 themes install automaticaly by just renaming the zip file once downloaded or by saving to disk and renaming the .zip to a .lsz extension. Once there just double click and if the theme is OTS2 it will open netloadmodule and download the modules and the theme should fire up.
This is a good way to test your own themes.
Always zip the theme then go in and delete any thumbs.db file to save file size and then rename the zip to .lsz and see if it installs before releasing.
I covered more than nessesary but wanted to help you out down the road. I hope this does it for you...
I'll check back and see if you need more help later.
Good luck

Loading a module is fairly straight forward. You add this to your step.rc:

LoadModule "c:\path\to\module.dll"

That loads it right up. A lot of modules however need to also have several settings added to the step.rc before becoming useable. Read the modules readme.

Then, if you want to start creating themes and such, you will need to learn about OTS2 like Immortal explained. Quite a bit more complex, but with a better result when it comes to creating a theme. Good Luck!

OTS2 isn't that much more complex, mostly just different and slightly ambiguous.

*NetLoadModule module-1.0

Knowing what to stick after the module- can be a bit tricky, but hopefully this will improve as module authors choose more sensible version numbers. (*cough*mzscript*cough*) The other issue is knowing when to use the "load" option.

I think the best way is to copy the *NetLoadModule line from an already installed theme if you already have the module you're looking for. I don't mean to go looking for a theme that uses it, I mean if you've got a theme handy that uses it, copy it from there.

If you're loading it for the first time on the system, you will know when you need to use the "load" option (well, not strictly NEED) if it comes up and asks which dll to load. I would take note of the name you want and cancel this, then add a "load name.dll" on the end and try again.

Another trick is to use NetLoadModuleTestMessage, which will tell NLM to list all of the modules it's loading and try to warn you about some possible errors. It won't catch the [1] thing, but it will warn if there is no version attached, or most cases when you should use "load"