The instructions simply say to put the .esp and .bsa into data. But there are also about a million other .esps in other folders. It says menus is highly recomended but where do I put it? It isn't compadable with DarN UI?

The bgMagicEV.esp and bgMagicEV.BSA files are the main mod. The rest are additions to that. These are described in the modules section of the http://theelderscrolls.info/?go=dlfile&fileid=219. Where it is stated that those esps are optional installs.
I would suggest installing it with OBMM, and using the http://www.tesnexus.com/downloads/file.php?id=25267.

And yes it is compatible with Darn UI (I have them both myself.) As I recall: don't use the KCAS menu option in Darn UI (you probably haven't anyway) and allow the LAME menu to overwrite the one you have installed.