It seems this was a overlook on my part, I just dropped the files without looking at the readme file. After reading it, I dropped the source folder outside of the Skyrim folder, and now it worked. I generated lod for both mountains and terrain. However, CK is crashing when I try to generate tree LOD. I already unpacked the BSA files associated with trees, but still crashes when at 50%. Might be some tree is out of place and this causes the crash? I dont know, but any information is appreciated.
I kept getting this error message: LOD diffuse texture '..\Source\TGATextures\lod\MtnCliff04LOD.tga' and normal texture '..\Source\TGATextures\lod\MtnCliff04LOD_n.tga' are not the same size (but should be). I checked the folder Source\TGATextures\lod and the files mtncliff04lod.tga and mtncliff04lod_n.tga have exactly the same size, 257kb. Earlier on, it was not generating lod because there was no source folder. The issue was with this same mountain cliff mesh. So I downloaded the resources from https://www.afkmods....d-source-files/ and unpacked it in the root folder of the game. Now it says the files dont have the same size, while they have it. Do anyone know a solution to it? It seems CK is mad.