The recruitment line was this bit

recruit "greek heavy cavalry" 0 requires factions { macedon, greek_cities, }

So you have done that, and yes you need a space so it should read

{macedon, greek_cities }

As for the Activision/Travis Rome Total War Gold that is not important (as long as its pointing to your rome directory!) Its the -show_err at the end that is important, and you do need a space between the " and the -

If you do have anymore trouble I can PM you my messenger address if you like.