OK. I finally have the file & checked it out in FS2002 Pro. All I can say is that it works fine for me. Theres no reason that I can see that it wouldn't work just as well in the Standard version. I must also say that I'm impressed. Well done Lonewolf.

However, I think the problems people are reporting are caused by the unconventional method of configuring the files. You have no need to take any notice of my suggestions but if I was doing this it would be somewhat differently. I hope you don't mind a few tips for future reference.
First, I see no benefit to including zipfiles within zipfiles. This doesn't make the file size smaller but quite often the reverse. I dislike instructions to extract zipfiles direct to the sim & advise people to ignore them. I prefer to install files manually so I know exactly what's going where if I run into problems. This is how I installed the JSF to my own system.
On extracting X35B_Pt1.zip to my FS Downloads folder I found 4 extra zipfiles named AIRCRAFT.zip, EFFECTS.zip, GAUGES-B.zip & SOUND.zip. On extracting these to the X35B_Pt1 folder this is what we have.

Installing the aircraft itself is straightforward. Paste the X-35B folder into FS2002\Aircraft.
Paste the files from the EFFECTS folder into FS2002\Effects & all files from the SOUND folder into FS2002\SOUND.
Installing the gauges seems to be the awkward part & this took me a while to figure out. Open the GAUGES subfolder within the GAUGES-B folder & paste the complete X-35 folder into FS2002\GAUGES.
I hope this is some help. Please try it & tell me if it works for you. I'm sure you'll find it worth the effort.