Yep, it works, however you need wrye mash to do this. Here are the steps to make it compatible.
1) When you meet Julan, pretty soon you will have to follow him up Red Mountain for the story. When you get to that point, go to an interior, or somewhere far away from red mountain like balmora. Save your game.
2) Deselect Mountainous red mountain, and click "Repair all" on your save game in wrye mash.
3) Do the part of the story where you follow Julan. Once you've finished, go to an interior, or somewhere far away from red mountain like balmora. Save your game.
4) Select Mountainous red mountain, and click "Repair all" on your save game in wrye mash.
5) Should work now, it worked for me.