Happy to report it works. Just a few notes for those who also want to do this.
Make sure you know how the launcher works. If you have already installed a mod, then the registry will have entries that will cause any further attempt to run "install.exe" trigger a virus warning, and if you are running Norton Int. Sec., it will delete the install.exe from the Hellgateaus launcher.
Put the London mod files in LostLondonV. Copy the launcher from the install package to your Hellgate London 1.2 Single Player un-modded directory.
Your INI should look like (remember Dx9 versus dx10 - I don't know if that was fixed since the 1.2.1 revival mod was published).
I had to change expert mode to 1, change lastpackagedir to the location of the mod files, change directxmode to 1, and delete whatever was under the [Hellgate].
Then I followed the revival mod inst. of running the game, kill a few bad guys. Then remember to go to the hellgate directory where you have copied the newlauncher.ini, pdf, ini and bass.dll. Launch the newlauncher. Verify in Options in the menu, then program settings, that you have the dx9 and expert mode checked.
Then follow the same instructions given for revival 1.2.1. When you install the addon file, you can only pick one of each (# of monster for quests, speed of movement, and size). Checking more than 1 will cause the program to report an error and will exit the installer. I went ahead and checked the 200 monsters, retain original game speed, and larger maps (not the ancient only one).
So now I have two games to play through again (guess it is true that they say majority of games people own on Steam never get played or launched when great mods keep making you come back to older games - good job modders).
I was disappointed that PC Gamer did not talk about either of these mods in their "Reinstall" section of the latest issue. I would have thought at least revival would get mention since it has been out for a while and was the first mod I played for HG:L. I think if the game had included either of these mods when first released (meaning the modders content was what included in the original design), I think this game could have sold better. However I think the thing that did hurt it was the "pay sub fee" to get new content as that usually turns people off when they see they have to buy the game then pay to get new content, back then in 2007, of course now, it is almost standard, but viewed as DLC, versus a monthly fee.