One more question. When repacking the BSA, how far does the file structure get maintained? Example, I chose 'add folder, distantlod'. And the relative path showed the individual files. If I put the distandlod folder within a second folder, I get the correct file path. Is this redundant or necessary?
Do not do that. Step #6 addresses the "make sure the file paths are correct" issue. You should not change the file paths of the BSA.
Edit: Please, stick to the site's thread if you have further questions on this topic.
Edit: You should be packing the folder that contains the files for the BSA. Pack the folder that contains the three folders extracted from the BSA. That is the purpose of extracting the BSA into a folder on its own...
Please read the directions fully in the future, thank you.:
The other key step, which applies even when using the other optimization method, is to repack the contents of the folder containing the folders of the Meshes BSA, instead of the folder itself or the contents of the Meshes folder.