Mr. Snowman (Frosty), someone else raised the same concerns/wishes with the Highlanders when I was first putting it together, and I did go back and give them higher morale to compensate for the loss of the region bonus.
Trying to paste in parts of the mod onto the standard files is not going to work, I am afraid. I spent hours last night trying to debug a few simple problems caused by changes I made to units regarding which factions, and, more importantly as it turned out, which cultures, they belonged to.

In addition to the changes in provincal ownership I made in this version, most of which will be reversed in the next version due to some research I made, I am also getting into making major changes to which factions the human can play as for the next version (short answer- all of them except the Papacy), and even a couple of changes to which factions are in the game in a given era.

I would much rather hear what changes you would like made to the mod, or added to the mod, than for you to spend hours fruitlessly customizing it, especially since the mod is still being enhanced.

Grifman, I don't know why the Medmod folder was created. I store the mod in that folder, and it is the folder I zip. However, that folder should not be created when the mod is unzipped. I don't know why exactly it isn't created normally, but it has always worked that way, and yes, I have tested it with the 8.1 version.
Anyway, all you need do is cut out the contents of the Medmod folder, and paste them into the Medeival- Total War folder. Then you should get the questions about overwriting files.

MiniKiller, the mod's Readme is available through a link in the first post, or go to my webpage thru the link in my sig, and click on the readme link there.

Kat, I have already added a second weapon, an axe, for melee (fighting). I remember having to customize one of the files to get the weapon to where it looked like it was in the man's hand (it was floating a couple of feet above). I can't remember how it all interacted off-hand, but some of the graphics stuff I did got pretty complicated. I spent every night for over a week figuring out how to do it, though I could have learned much faster had I found the guide thread in the Dungeon before I started rather than midway through. Getting LK's unit addition mod also helped.

I will try and remember about the horsearchers.