Ah! New to mods? Here's the primer.
1) Always read the readme. Pay extra careful attention to any section that says "installation", "deinstallation", "requirements", "conflicts / incompatibilities", or "known issues".
2) Always read the readme.
3) Read the stickies at the top of the forum. They have a lot of helpful hints, and can prepare you to identify a number of common problems as they occur.
4) If your mod setup reaches any level of complication, you will need to learn to use tools like Wrye Bash and Oblivion Mod Manager (OBMM). They also have some features that can be very helpful in managing simple mod setups, once you know how to use them.
Based on what you've described and the readme of that mod, here are some likely sources of the problem.
Do you have Oblivion fully patched and Shivering Isles installed? These are listed in the requirements.
If the above is not the problem, then most likely you have an Archive Invalidation issue. This happens when the Oblivion engine forgets or refuses to load textures for some weird reason. This is a solved problem, though; search for "Oblivion archive invalidation" and follow one of the fixes.
Both of these things are mentioned in the readme; if you want to use mods, in general you'll need to read and find these issues for yourself.
Happy gaming!
Asterai