I didn't say you were. The readme should've had that kind of information, that's why I asked. Since it didn't, it's not your fault. ;)

I'm not sure if it would make a difference, but make sure the file (i.e. dialog.tlk)isn't checked as Read-Only.

Also, make sure you aren't running the game while you are trying to install the mod.

When you unzip the file, try running setup inside the folder-it should give you the option to extract some files. Do it, and check the box that says something along the lines of "Show extracted files". When it shows you the files (should be in a seperate folder), copy them and paste them in your Black Isle/BGII-SoA folder. Then run setup from there. If you need anything cleared up, ask.