Credits
Creating these packages wouldn't be possible without the joint efforts of Quaxi, RGiles, and Numenor at ModTheSims (warning: ModTheSims is not exclusively PG-13 - by clicking this link, you acknowledge this).
About
CEP is a Color Enabler Package. By default, The Sims 2 does not work with all recolors. CEP fixes this. Note: you only have to download and install this once (not for every custom content file you download).
The files
You can opt for either the automatic or manual install option for Windows. Mac has manual installation only. Both download options contain full instructions:
More information
Go here for the official download location and installation instructions.