[SixOfSpades]

As for which MODs to install, the rules are simple:

1) Those MODs that do not state that they're in WeiDU format are old, and probably buggy. They are also highly incompatible: You can only have 1 non-WeiDU MOD installed at any time, and they must be installed before any other MODs. (Official patch and BaldurDash always take precedence.) If you encounter a non-WeiDU MOD, search around and you may find that it's been updated to WeiDU format: Ascension and The Darkest Day have been resurrected in this manner.
2) Go for what you want. If you think that the selection of Druid weapons in the game is pretty damn pitiful, you might want Item Upgrades. If you think the de'Arnise Keep is too easy and TorGal makes a pitiful guardian for the FoA, I'd suggest Tactics. If you like being a Thief or Bard, I'd suggest Improved Thief Stronghold and Rogue Rebalancing. If you like to play Solo games or with a small party, you might want the EXP cap remover in Ease-of-Use. Note that, in the great majority of these MODs, you can pick and choose which components to install. If you want to shut up that "You must gather your party before venturing forth," but don't want to be able to wear Plate+1 and a Ring of Protection+1 at the same time, you can control that. It's the same thing with the Item Upgrades: andrewas objects to the CF+5, but nobody's going to force him to have Cromwell upgrade the sword if he doesn't want to.