I didn't try the zip. I don't really like zips, its a hell to remove a mod if you don't like it, so I prefer UMOD's of exe's.
But I finally figured out what the problem was. The problem was that I did not have enough space on my C: drive. The weird thing is that I have the setup.exe on the D: drive and I am installing to the F: drive. I found out because I got a balloon popup that said that space was getting low on C:.
I could not create more than 900MB of free space on my C: drive so I had to change the settings for temporary folders to another drive.
I think it would be nice if the installer could extract directly to the place where the stuff is supposed to go. Now I need over 1GB on my C: drive for temp stuff that could have gone directly to the game dirs.
Anyway, problem solved and the mod is looking good