Ah, i may not have been clear. You dont want to merge the textures and meshes folders. Never do that. I meant you should be placing the mods meshes and textures folders into oblivions Data folder. If you check oblivions data folder, inside you will see a textures and meshes folder. This is how it should be. Mods that have texture and meshes folders will work great if you drag the mods textures and meshes folders into Oblivions data folder.
Data
--- Meshes
--- Textures
Unfortunately the above is a "best case scenario" and it actually really depends on the folder architecture of the mod.
For example (when you open the mods winrar file);
x.esp
x.esm
Textures
Meshes
is a good example of a mod folder structure. If you drop this into Oblivions data folder it should work fine.
Now the tricky part is that some mods do not come structured in this way. I have no idea if the chest mod you are using is properly structured. In some cases, you have multiple folders to choose from for the mod, and you have to pick/ sort one and delete the rest. Even more confusing is that some mods come in omod format for OBMM, or BAIN format with/ without install scripts for Wrye Bash.
An example of a bad mod structure;
x.esp
1024x1024 folder
2048x2048 folder
In this case you have to check inside each folder, see if they contain meshes or textures. Then pick the resolution you want, and only extract the folders from that resolution folder.
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This is why unless you know what you are doing, and are intimately familiar with all the variations of mod structures, you can get easily confused and end up with a bad install.
Unfortunately, WB is easiest if you know how to use it. If you have never used it before its quite a lot to learn. It is the most complete installer for oblivion mods, but has a lot of options. I say 'easier' because it reports if mods are corrupt, or have missing files, bad installs, or are conflicting with other mods and files. But to understand that means learning Wrye Bash. And thats not so easy
Takes a little bit of time. Its not technically difficult or anything, its just a lot of information and options to learn.
I would really really recommend reading this guide. It a well written guide on exactly this situation, and can teach you about folder/ file structures for oblivion (as well as many many other guides). It also has guides for OBMM and Wrye Bash (BAIN) if you look on the left side menu.
And no, do not use NMM, it has problems with oblivion installs.
Hope this helps 
Edited by MadWizard25, 09 December 2013 - 11:03 AM.