I just installed this mod, and love almost everything about it. My one small complaint is that the weapon-sway for beginners is too harsh. Even when I was the most-novice at firing pistols and rifles, my aim didn't sway that much.

I turned off the feature that makes it sway more when the weapon is highly-damaged, but there's still too much. My question is, can anybody explain to me how to change it? I'm guessing it's in an .ini somewhere, perhaps FOSE's .ini?

There are two parts to sway in FWE, and both can be set via the in game menu - the first, as you mentioned, relates to condition of the weapon, the second relates to character skill with the weapon type. Try lowering the effect of that some and see how it treats you