Fixed my problem and have woai aircraft working now. I spotted in woai installer when navigating to the fs9.exe file if you change the file type you can select fsx.exe and then the fs2004 drop down becomes available to change to fsx. This then installs the ai aircraft straight into simobjects/airplanes.
Thanks. Your step 3 might also fix my problem of woai not working in p3d v2. I will try it tonight. I was pretty sure the aircraft folder was causing a problem but didn't know if I should copy into the airplanes folder as I assumed this would make the selectable aircraft list massive and might impact load times. DylanM, when I used the WOAI installer the dropdown from fs2004 to fsx was greyed out so when I navigated to the p3d v2 folder the only exe it could see was fs9.exe. Cheers