Here are the steps I went through to turn Oshiel's animation replacer into an AnimMod:
1. Extract XComplete.kf to the Data Files/Animation folder
2. Run split_kf.exe from the kit, and type "XComplete.kf" for the first question and choose "yes" to import tail and toe animation.
3. Rename the XComplete folder that split_kf created to "oshiel"
4. Go into the "oshiel" folder and create a new folder called "male" inside it.
5. Move all the KF files in the "oshiel" folder to the "male" folder inside it.
6. Copy the AnimMod.xml file from another mod folder, and edit it like this:
<?xml version="1.0" ?> <AnimMod> <name>Oshiel's Animation Replacer</name> <author>Oshiel</author> <version>Beta 2</version> <date year="2007" month="2" day="24" /> <image>icon.png</image> <description>This is Oshiel's ninja-themed animation replacer. According to him, "This is some seriously anime/ninja influenced animation. As such it has been described as "over the top;" fair warning."</description> <layer>no</layer> </AnimMod>
7. Save that file and then make a 100x100 pixel icon image and save it as icon.png in the "oshiel" folder.
8. Open the GUI... you should see the new anim nod in your list. Process the anim mods to apply it to the game.
9. Play Morrowind. Now you move like a ninja!
Optional: If you don't like all of Oshiel's animations but like some of them, then it's easy to remove the ones you don't like. Just go into the "oshiel" folder you created. You will see that there's one KF file for each animation that it replaces. If you know which one you don't like, just select it and delete it. Otherwise you can use preview_kf to see what it looks like in NifSkope to make sure it's the right one.