These plugins will make Better Cities and Werewolf - Legends of the North compatible. There are two plugins for this:

Better Cities CHORROL - Werewolf.esp
This moves the house from its original location to a spot just north of Modryn Oreyn's House.

Better Cities BRUMA - Werewolf.esp
This moves one Werewolf poster back to the middle front door of the chapel.

Requirements:
Latest Patch for Oblivion
Better Cities 4.3.8 using either Chorrol or Bruma or both. (http://www.tesnexus.com/downloads/file.php?id=16513)
Werewolf - Legends of the North 2.0 (http://tesnexus.com/downloads/file.php?id=24453)

Installation:
Drop one or both of the plugins into the Data folder and load them immediately after Werewolf-Legends.esp. Then load your better cities plugins, either the merged or the individual plugins, after these plugins (Better Cities should on general principle be loaded near the end).

Credits:
Bananasplit, Wolfslady, Reckless, SilentResident, Vorians, Ismelda, and the whole Better Cities Crew for their superb work making Oblivion Cities Better.
StannieDum for enriching the Oblivion landscape even further with his excellent new quest and companion.
me, somebodys_kid, for doing next to nothing to make these two great mods compatible.