Ok Now this? Oh man I know why Im an animator now!

syntax error
< {
>

This all it says. Its referring to line 10 and I made the change from material mtl_toon to MATERIAL* mtl_toon

If anyone has the updated script I would love too see this...
Here it is straight from wiki...

Code:
bmap bmp_normalizationcube=<normalize+6.tga>;
bmap bmp_toonlookup=<toonlookup.tga>; 

function mtl_toon_init()
{
	bmap_to_cubemap(mtl.skin1);
}

material mtl_toon
{
	skin1=bmp_normalizationcube;
	skin2=bmp_toonlookup;
	event=mtl_toon_init;
	effect
	"
	texture entSkin1;
	texture mtlSkin1;
	texture mtlSkin2;
	matrix matWorldViewProj;
	matrix matWorld;
	vector vecSkill41;
	vector vecSunDir; 

	technique toon
	{
		//-------------------------------paint
		pass p0
		{
			texture[0]=<mtlSkin1>;
			texture[1]=<mtlSkin2>;
			texture[2]=<entSkin1>; 

			addressU[1]=clamp; 

			magFilter[2]=linear;
			minFilter[2]=linear;
			mipFilter[2]=linear;

			vertexShaderConstant[0]=<matWorldViewProj>;
			vertexShaderConstant[4]=<matWorld>; 

			vertexShaderConstant[16]=<vecSunDir>; 

			vertexShader=
			asm
			{
				vs.1.1
 		                dcl_position v0
				dcl_normal v3
				dcl_texcoord0 v7
				dcl_texcoord1 v8

				m4x4 oPos,v0,c0	  // transform position to clip space
				m3x3 r0,v3,c4	  // transform normal to world space
				dp3 r0.w,r0,r0	  // renormalize it
				rsq r0.w,r0.w
				mul r0,r0,r0.w
				mov oT0.xyz,r0.xyz  // output normal to oT0
				mov oT1.xyz,-c16    // output light direction to oT1
				mov oT2.xy,v7.xy    // output uvs to oT2
			};
			pixelShader=
			asm
			{
				ps.1.3
				tex t0		    // fetch normalized normal
				texdp3tex t1,t0_bx2 // light.normal=u -> use u to lookup in t1 
                                                   // _bx2 -> 0..1 of normcube will be   -1..1 
	 			tex t2		    // sample color map
				mul r0,t2,t1	    // modulate with shading
			};
		}
		//--------------------------------------------ink
		pass p1
		{
			cullMode=cw;
			vertexShaderConstant[0]=<matWorldViewProj>;
			vertexShaderConstant[16]=<vecSkill41>; // outline_thickness, 0, 0, 0
			vertexShader=
			asm
			{
				vs.1.1
				dcl_position v0
				dcl_normal v3
				dcl_texcoord0 v7
				dcl_texcoord1 v8

				mov r0,v0
				mul r1,c16.x,v3		  // scale normal
				add r0.xyz,r0.xyz,r1.xyz  // shell offset 
                                                         //(vertex position + scaled normal)
				m4x4 oPos,r0,c0		  // transform position to clip space
			};
			pixelShader=
			asm
			{
				ps.1.3
				def c0,0,0,0,1		  // outline rgba
 				mov r0,c0
 			};
 		}
 	}
	";
}

action toon
{
	my.skill41=float(0.8); // outline_thickness
	my.material=mtl_toon;
}