How can i exactly install the mod MERP for the Steam version of Oblivion?

Well as an XBOX user, I don't know at all. :/

But my friend had a similar problem at his house (he's on PC) and he just searched for a solution in YouTube and found one. Try there

http://i142.photobucket.com/albums/r105/Enoil/DarkFishyStick.jpg