Adding a new faction is a pain if you dont know what you are doing, but it looks like you got the general idea.
For adding a copy of a tech faction you just need the playertech.entity renamed to your new faction. The english.string edited with your new factions name added, and your new factions player.entity added to the entity.manifest. That "should" be it. If you added on to your new faction (new ships, research, or ability's) you may need what you added listed in the entity.manifest as well.
Many entitys are co-dependent on other entitys (for research, ability's, strike craft, etc. etc.) Sifting through them all is a daunting task. When you add your new ships do not put any research pre-req's, strike craft, or abilitys on them until you understand how they work, and you are ready to add them. One miss spell, or missing entry will make wierd things happen, or will send you right back to your desktop (as you may have found out the hard way).
Check your Entity Manifest's, and make sure your new Player"Newracename".entity is there. If not then add it, and add 1 to the number at the top of the list. Then try it again. Always add to the number at the top of the list for every string, or line you add. If you remove a string, or line subtract from the number, or you will get errors. If you see a number at the top of a list and you change the lines. Make sure the number at the top matches.
You can use developer.exe to check for errors, or missing files if you didnt know this already. It should be where you installed sins.