That setting doesn't have anything to do with the AI. It determines how the game chooses which sets of leveled lists the leveled actor should be picked from in comparison to the player's level, checked against the encounter zone's mix and max levels. You are not supposed to touch those.
edit: I can imagine you want to set that to hardest value in the whole game, but if you do you basically destroy one of the game mechanics regarding areas difficulty.

Oh, so, http://www.creationkit.com/index.php?title=LeveledCharacter ? Which again points to game settings that can change. Yes, I found the wrong settings above.

I still don't see why you feel you need to directly change Skyrim.esm for this.

dAb, I very much appreciate your input here, however please take some responsibility to asses weather or not you know what you are talking about before you post. So you do not give out misinformation and waste peoples time like you are doing now.

" The problem I have is the leveled NPCs. In the cells they have a Level Modifier Tab on their template. When that is checked "easy" even if you mod the list so only the highest level opponents can be selected, they are lethargic bad opponents. However when they are checked hard or vey hard they are smart quick excellent opponents. The effect on the AI is enormous. It would be much easier to simply change that setting in the Skyrim.esm than to change just about every cell with my mod."

The opponents on my leveled actor list are the same level.

The difference in AI from an opponent set on easy compared to an opponent set on hard is as I very clearly stated enormous.

Wow. Really? You don't even know why we don't change skyrim.esm directly and I am the one not knowing what I'm talking about? The nerve of some people. Did you even bother reading the link Hana posted above, which states exactly what I posted?

Have it your way, I'm out of here.

That is what you did. You went and read that page, and without having any clue as to what you were talking about ( other than what you read on the Wiki ) you posted misinformation.

The difficulty tab on the leveled actors template greatly effects UI. Period. You posted misinformation. Period.

I am very clearly starting a discussion here about the technical issues regarding modding the Skyrim.esm. Not why "We don't do it".

As I stated earlier. I have modded the Skryim.esm and I am in the process of running tests. I have also done extensive testing on the level actors.

It is probably not likely. However I am really only concerned about making my mod the very best it can be.

I would not.

Well. I could just let this go, but I'm not going to let you accuse people to spread misinformation, since you are the one misinformed here. Did you actually test the above? I don't need to, because contrary to you I know how it works. And no, I don't need a wiki page to tell me, that was for you to learn. Did you happen to note that if you alter those settings the actual in-game NPC comes from a different template? Does that ring a bell? You can sit there all day claiming that those settings affect the AI: they do not.

Yes, I think I very clearly told you I did. Did you not even read the post?

"I have also done extensive testing on the level actors."

All of the leveled actor lists in my mod have the NPCs set to level 1. Only the highest level opponents are on the list. The player remains at level 1 the entire game.

Please get a hold of yourself, I have been modding the NPCs in the game for over 3 years I know exactly what I am talking about here.

"The difficulty tab on the leveled actors template greatly effects UI. Period. You posted misinformation. Period."

This is what happens when people post misinformation. They spread misinformation and waste peoples time.

Fine, if you think you know exactly what you are talking about I presume you don't need any help. It's pretty clear who's the one spreading misinformation here anyway. Cheers.

"The difficulty tab on the leveled actors template greatly effects UI. Period. You posted misinformation. Period."

No. I am not here looking for "help". I am here looking for an exchange of valid information. Hopefully from people who have modded the Skryim.esm file, or have an interest in doing so.