O.k. so for whatever reason the skies won't show up. Everything else works fine and looks great, but during the day the sky is just blue/white and and at night its just black. I have redownloaded/reinstalled several times and it hasn't worked. Before I had to reinstall morrowind due to a virus I used this mod and now I have no idea why it isn't working!
It sounds like the problem I had. Maybe the textures are too large for your video card to handle, as it seemed to be the issue my case. I had to reduce the size of the texture's in half to get it working. I sent the files to SWG, so there may be a lower-res version available soon.
LordHaHa
(edited for more detailed info; never cook dinner and post on a BBS at the same time, kids)