So I believe I have solved my problem. After hours of re-installing Supreme Commander, re-installing FAF and
fiddling with old versions I found that the file 'lobby.nxt' was causing me to be unable to create Skirmish games
Offline and unable to create Online Games as well.
SOLUTION:By deleting this file from your /gamedata directory, you will revert back to the original lobby created by GPG and
be able to play skirmish games (Test mods).
OR:You can replace the 'lobby.nxt' with an older version that worked. I just so happen to have one and will
Link it for those who would like to use it.
WARNING:This does not fix the problem with creating custom games Online. As of now I am still unable to create online
games. I still can not find out why. My only guess is that when I try to create a game, it first requires me to
update the 'lobby.nxt' file and then runs back into the same problem.
EDIT:After downloading the 'lobby_coop.cop' file by trying to create (and successfully i might add) a coop game, I then became able to create custom games online!!!! Not sure what the cause may be or even if it was the solution but It is worth noting and letting the rest of you know.