I would like to know personally if this mod is truly a 'mod', or a kind of hybrid which isn't included within skyrim. What i mean is.. Is this mod like a .bsa, .bsm etc or will it have its own folder along with a data file and exe for it?
If if is made as every other actual mod is (because this is not a mod, but basically an entirely new game in my opinion) how will we go about sticking mods into it to change it around, as i do not have very much experience using the CK.

Its still a mod. But this is
Its still a mod. But this is a good question, we are still debating over making it "kind of" standalone. The reason to stop confusion of players thinking it would be a "great idea" to use their leveled Skyrim character to play. Not really what 100 hr game in itself should be played for idea of challenges. People are of course welcome to do this, we don't hold people hands on such things, but we find the person that wants to do this is usually the 12-16 year group, which we are not catering for anyway.
It potentially helps with loads and maybe performance, but also means we can establish certain mod capabilities and that Skyrim saves wont be corrupted.