When i launch the toolset nothing shows up in it. It is blank like it doesnt see the game. I can load a .mod but im looking for items and npc's. No guides i have found tell you how to load items.

You have to load a module to be able to edit it.
Otherwise you can create one from scratch, which includes creation of locations, items, NPCs, scripts, etc. with use of basic game resources and/or custom ones, if you add them.