Ok I've extracted all the items in the MGEXE folder into the MW directory (alongside data files etc..) and when trying to run the MGEXEgui installer I keep getting 'MGE has stopped working'. Anything else I need to know? is the mod compatible with windows 8?

I can defiantly tell you this mod is compatible with windows 8, I am using it. Did you install it the right way?

Let's use the http://www.gamesas.com/topic/1467919-shelter-from-magnus-blaze-14-mge-xe/ , which also has detailed instructions in the first post, which might help you.