Talon, you don't place your new, unzipped Sounds folder inside your old Sounds folder, you replace it.
Open up your AH2 folder. Rename your old Sounds folder to Sounds1 or OldSounds for safe keeping, or delete it completely. Now, paste your new Sounds folder into your AH2 folder. That's all there is to it. No need to delete any cleanup file or anything. Just replace your old Sounds folder with the new one, NOT inside it. Any more questions, just post.