Best thing to do is go to
sortitoutsi.net get all your pictures from there and save your self alot of time.
Then get your self over to download.com and get
winrar when you download some of the picture packs they come in a .rar file, you'll need to install winrar to open them to a standard folder.
Just install it, right click on the .rar file and click extra here, with in a matter of seconds you'll have a standard folder, and you can have a look what the pictures are like.
Now open my computer, documents & settings, sports interactive, football manager 07, create a folder and call it graphics drop your pictures in there, you can even make folders to keep it all tidy, like graphics>>face packs>>english etc etc.
Once you've made the folder etc, open the game up, click on options, preferences, untick the skin cache option, and then tick the always reload on confirm, then click confirm, wait a few seconds and they should all show up.
It sounds complicated but it really isn't when you've done it once.