If it's not showing up in the custom stories browser, that means it's not recognizing the location.
For starters, go into your custom_stories folder, and then make a new folder called...well, I don't know, whatever you want.
Inside that new folder place the custom_story_settings.cfg and extra_english.lang inside there.
Then, make a folder called maps (still inside your custom story's folder), and then enter that folder.
Place your map/hps files in there.
Now, go back to your custom_story_settings.cfg and open it up.
It should look like:
<Main
Name="MyName"
Author="Me"
MapsFolder="maps/"
StartMap="mymap.map"
StartPos="PlayerStartArea_1"
/>
Make sure you have a PlayerStartArea in your map (place it via Areas), and you'll be good to go to playtest your map!
Your extra_english...is not right.
It should be structured like so:
<LANGUAGE>
<CATEGORY Name="CustomStoryMan">
<Entry Name="Description">Your custom story description</Entry>
</CATEGORY>
<CATEGORY Name="Journal">
<Entry Name="Note_YourNoteName_Name">Name of a note</Entry>
<Entry Name="Note_YourNoteName_Text">The note's text.</Entry>
</CATEGORY>
</LANGUAGE>
...etc etc. They have guides written to under how this works.