Yes I have read the FAQ but when I get into my dod source folder and then open materials there is just a folder called 'temp' but no weapons folder or anything else for that matter..

Then add them...

If they aren't there, then where does the game look for the current models and weapons?

All of the game's default files are kept in a .gcf file. What the game does is first look in your dod folder for files. If it doesn't find what it needs there, it dives into the .gcf for the it's default files. So when you add custom content, it will see that first and load it. For everything it doesn't see it loads it's default. Because you haven't added any custom content, those folders aren't even there, so it's loading everything from the .gfc

Gotcha, thx.