Ok just find it confusing as it is defined as mod so first tried it in the mod folder which of course gave no results. Eventually I just unpacked everything from the folder into the texture folder and it works better. I still get cases on some of the NPCs where it can't seem to figure out which texture to use so sometimes it is the vanilla texture, sometimes the texture from this mod will show, then other times it is like a mixer of the two. As an instance the mage guild quest guy seems to have new textures for his boots but the rest is still vanilla, it looks pretty odd at times.
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