I don't use AGS as it doesn't really play nice with Vista either.

My method is to extract to first extract the sims from my game, I then run them through CAS in a clean hood with no CC and dress them in base game clothing and hair, I then extract the 'clean' versions from the new hood and distribute those .package files. For sims I wish to include CC with I run the clean versions through bodyshop for dressing and packaging.