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To shorten that dress you need to actually shorten the mesh, not just change the texture. Or alternatively, cut off the top and combine it with a bottom that is already the length you want (you might need to fiddle a bit to line it up again in the middle, I can't really tell from the screenshot).
You may also be able to find a custom mesh that supports alpha edits, perhaps? I know those were pretty popular in earlier games; I don't download much so I don't know whether such a thing has been made for TS4 already. Maybe try asking in Discussion > Where Can I Find if you'd like to try that approach.
Also, moving to Create > CAS because Help is for game help.
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Create forums for that.
In the kingdom of the blind, do as the Romans do.