I have no idea what SWG FAQ you're talking of, but the enclosed ReadMe file has all the details on what the different Sky files are for and where to place them (if you want to use them... since some are optional variations of the same thing)
The .mit files are for changing the ini file with the enclosed "MorrowINI" program. This is optional, since most people tweak their own ini manually.
The Reset to Vanilla.mit does as it is named.
None of them go into the Textures folder.
Basically, install the mod just like any other mod. Place the correct files into their designated folders. (as described in the ReadMe)
This mod has no esp, since it is a simple mesh/texture replacer.
Be sure to also install the 'Night Sky Fix' from the same page, and install it last.