yes, it's vital the that textures that you want in the lod, go into the lod textures folder. if you're using oscape and still have purple textures, make sure you've fully extracted all the relevant lod textures, use 2x2 or 4x4 in the main oscape texture sampling settings, make sure you select png as well as directx and also install the maximum resolutions available rather than the stock 128x128. if you're not seeing any lod at all after generating it, your lod settings file is corrupted, always have a copy of the original tamriel lod settings file available for renaming. Somebody ought to make a mod containing all the extracted files needed to get the ck working, everybody doing it is unnecessary, just reinventing the wheel each time.