one more thing would make this mod the best ever.

Giving the links of the files in formats matching the vbulletin format if files are going to be used in threads for example
also links to the files to be able to post them in threads and they'll be downloaded directley from there.

I don't understand your question.
You can link in the forum like:
This will be converted to a clickable link and the only thing a user has to do is to click the "download" button.

You don't want to put direct download links in your forum, because that way everybody can download the files and discard any restrictions made in Downloads II. You wouldn't need something like Downloads II in that case.

at least for the images it would be nice so if the extinsion is .jpg || .gif || .jpeg
for example it will give code

Ofcourse, I fully agree with you there.
And it would be nice if there would be a build-in option to have a choice to just edit a file, or replace the file with tne new file. Agree with you there too.

Hope RS-Jelle will get back soon.

I could not find this through the search function of this mod thread, so I am asking here:

Is there a way to restrict members from downloading files until they have made X amount of posts?

Also, I just found a member that is bypassing my download restriction for non-supporting members. I have a limit of 3 downloads per day for free members; however, he figured out that he can change his IP address every 3 downloads, and go all day long. So, I banned him, but it shows a major deficiency to this software. I make restrictions based upon usergroups, with named users in them. Why is the download software restricting based upon a different variable that I cannot control? That is not a good thing.

How can I change this?

No unfortunately there isn't. I needed that too but as far as I know this feature will only be available in the vb4 version of Downloads II.

I don't think that the check is done against ip address, except if you allow downloads for guests because that's the only way to check guest downloads.

Check your guest settings. It might help to add some download amount (in kb) limitation to be sure that users can only download a max amount per day.

Hmmm I have an .htaccess file already. However it in a directory up from where the downloads.php is located. :(

For instant my .htaccess file is located within /www
and the downloads.php file is located within /www/forums

What do I do?

That doesn't matter. You should have the .htaccess mentioned by RSJelle in your webroot diretory.
So in your case that would be your /www directory.
If you already have a .htaccess file in there, add the 2 lines RSJelle gave you.

Is is possible to force the Create New Thread addon, where it says Thread Discussion to be bold & underlined?

I have tried in the template but it doesn't take. Any suggestions?

added, I also tried though the phrase adding the u and b code, it does not parse and shows as the tags.

I have files with long names, but names cut out.
How do I make out the full name.?