The subfolders "b" and "BH" in the archive's Meshes folder go into your Data Files\Meshes folder
The subfolder "BH" and all the loose DDS files in the archive's Textures folder go into your Data Files\Textures folder
The three ESMs go into the root of your Data Files folder
Leave the "Better_Heads_Extras" folder alone for now, until you've got this working.
[Edit for clarity, I hope]