pandapro , my only advice for now is for you to try the game on your computer (windows or linux). Once you get it to work on your computer, follow the same steps on your Android, except the "Res" folder on your computer is in the game's subfolder, while on android it's in /Wagic/Res at the root of the sdcard.
The game is not perfect on android and can crash, however if you cannot even reach the main screen and interact with it, something's wrong with your install. If you use the MTG Mod, you should have something like 8000 unique cards, not 4000, so this tells me your install is fishy.
For the "knights and dragons" mod, replacing the modrules.xml as you did should be enough, but I'm wondering if you're doing it correctly.
i can get to the first screen with no cards
This is not normal, make sure you put the modrules.xml file in the correct location, it should replace the existing one
then, i install a mod (battle of planeswalker) and get the counts of cards... like 4000 or the like...
I don't know what that mod is. Wagic for android is "officially" compatible with the Knights and Dragon mod AND with the Resource folders from Wagic 0.16, nothing else. You should end up with 8000 cards, not 4000.
Again, try the game on your PC first, and hopefully it will be obvious to you what files to copy to your android.
The official release of Wagic will all download and install automatically for you, so it should be easier next time. Note, however, that you'll need android 2.3 at that point.