Now, I thought(!) I had followed the instructions perfectly, but when I went to test Morroblivion (close OBMM, launch through Steam) - the menu comes up, I hit new game, name and customize character, and suddenly I'm falling through what should be the boat but is instead giant WTF starbursts.
They are very appropriate, in that they say what I'm thinking. Still, I can't play the game this way. I am not new to modding; last time I played through TESIV it was with about thirty different mods, but none the level of added content or complexity of install that Morroblivion has.
What exactly did I do wrong? Attached below is an OBMM window cap, and the 00, 01, etc folders are in the Steam\Common\Oblivion\Data directory. Fairly certain I installed OBSE correctly, however trying to launch from OBSE instead of Steam gives me an error message.

You are Missing Files if you
You are Missing Files if you are not Using ( WB ) you will have to Extract the 2gig Archive, then Cut All Files and Folders out of the 00 Core Directory (.esp)(.bsa) (Meshes)(Textures) (ini)(Video) and Paste them into your Oblivion\Data Directory Say YES to Overwrite All, for OBMM to Read them,,The Same with the Other Directory's 01 Chargen,,01 Better Map,, and so on