You must have done something wrong.
Probably. As you already know, http://www.tesnexus.com/downloads/file.php?id=24701 by TheNiceOne is a script which allows to convert RAEVWD and RAEVWD SI in OMODs and install them without the need of converting them to OMOD manually or messing around with individual folders and so... For the lazy people as me. Very easy, You only need to follow the following steps:
1. Download RAEVWD
2. Download RAEVWD omod Installer
(Don't extract either)
3. Start OBMM, and click "Create"
4. In the "omod creator" window, click "Add archive"
5. Select RAEVWD_v1_6-20053.7z and click "Open"
6. OBMM will now work for a time, and then give you a warning about esp in sub-directories. Answer "Yes".
7. Click "Add archive" again, and select RAEVWD OMOD Installer, and answer "Yes" to import omod conversion data
8. Click "Create omod" and let OBMM take its time compressing the OMOD.
9. Install the RAEVWD OMOD by double-clicking it.
10. Answer the pop-ups.
11. Installation is complete!
To create a RAEVWD SI Edition OMOD, follow the same steps, but with RAEVWD SI Edition and RAEVWD SI omod Installer instead.
... but as you said, probably I just did something wrong (can't remember what at the moment, though). So I installed the .esps manually, and then updated the LOD with TES4LodGen.
Do you the the expected LOD results?
Not really. I can see the distand buildings (not distant rocks or vegetation, even if I installed all the files), but with the issue Arthmoor has described in the first post:
Sometimes when viewing the world at odd or extreme angles, the LOD objects will turn bright yellow or completely black and then revert to normal when you move. One known reason for this is another LOD mesh that has specular properties enabled on it. Another known cause are LOD meshes with vertex color properties.
That's strange because I don't run any other LOD mod and just a few basic plugins which have nothing to do with LODs + http://planetelderscrolls.gamespy.com/View.php?view=OblivionMods.Detail&id=708 + http://www.elricm.com/nuke/html/modules.php?op=modload&name=Downloads&file=index&req=viewdownloaddetails&lid=4314, which aren't other LOD mods but simple texture replacers. But maybe the issue is related to some mystakes I did, so I'm going to re-install both RAEVWD mods, that should solve the problem.