If you can't install the mod you need to put the files in Data>textures>sky No idea why the mod author didn't fix that himself but if you use MO just enter the folder where the mod is located and create the texture and sky folder (the data folder shouldn't exist anyway if you use MO).
@Dante So true. We deniately need Terras, Aquas, Eraqus' (Armor of the Master) and Master Xehanorts/Xemnas/No Hearts Keyblade armor (with capes in Terras and Aquas case, like in the trailer) and Terras (for males) and Aquas (for females) normal clothes. It would go well with the Ultima Weapon sword.
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No idea why the mod author didn't fix that himself but if you use MO just enter the folder where the mod is located and create the texture and sky folder (the data folder shouldn't exist anyway if you use MO).