hi i was wondering how i install these textures corectly? the readme states:

"The textures are in seperate directorys for easy Identification but they need to be installed in the "root"
of the Morrowind texture directory."

im pretty sure i have to take the actual texture files out of the individual armor files he made for easy sorting but correct me if im wrong. my question is do i just place them in Morrowind/data files/textures? or is there a folder im suposed to place them in? a "root" folder?

No, the root folder is just the textures folder. As you suspect, you need to move each texture into the textures folder.

This. Root just means not in a sub-folder and directly in the Texture folder.
Also, as you already guessed, the 512/1024 folders were just there for sorting reasons.

Edit: Ah! I was too slow.