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With the zipped files for both the editor and the dll files, open both with winzip and then extract them to the desktop (there's an extract button in winzip that you can press as soon as you have the zip file open which will automatically extract all the necessary files). Hopefully this will do the trick for you!
As far as the faction issue is concerned, I think we're all going to have to wait for the next version of the mod until this is under control. It seems to be an issue for the majority of people playing it.
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