1. Navigate to this location: C:\Program Files (x86)\Steam\SteamApps\common\sid meier's civilization iv beyond the sword\Beyond the Sword\Mods. You should now be looking at a list of the mods installed for Civ 4 Beyond the Sword. One of the folders listed there should be "Fall from Heaven 2". If not, then the mod was installed to the wrong location. When you attempt to install the mod, the installer will suggest what it believes to be the correct install location; if it is wrong, then accepting the default location will result in the mod being installed incorrectly. In that situation, you'll need to tell it the correct installation path (which in your case would be "C:\Program Files (x86)\Steam\SteamApps\common\sid meier's civilization iv beyond the sword\Beyond the Sword
\Mods").
2. This behavior is part of windows, and does not indicate a problem with the installation of the mod (nor does the absence of this dialog indicate that the mod was installed correctly).
3. Are you able to play games of Civ 4 Beyond the Sword without any problems? Naturally, Civ 4 will have to be installed correctly before FfH2 will work. Try creating a game of BtS (any settings will do)...if you can get past map generation and to the point where you can move units around then you're okay. If not, you'll need to get Civ 4 working first. (I assume Civ 4 is fine since you are able to play Dune Wars, but it can't hurt to make sure.)
4. FfH2 requires v3.19 of Civ4:BtS in order to work correctly. Steam should have automatically performed the necessary update, but it's a good idea to make sure. Load up Civ 4, and at the main menu click "ADVANCED" and then "ABOUT THIS BUILD"; the Build Version should be listed at 3.1.9.0. If not, then you'll need to get the game patched to the correct version before FfH2 will work correctly.
Also, make sure you are installing the mod + the latest patch, and not just the patch. You'll want to use the ones provided by Kael (rather than other ones that you might have run across from other sources); you can find them by following the links provided at the top of the first post in the
FfH2 Bug Thread. Install the mod first, then the patch.
You may also find it helpful to refer to my guide
How to Install FfH2. It provides detailed instructions for recovering from failed installation attempts and installing the mod and patch correctly.
If my suggestions here and my guide are not enough to get things sorted out for you, please post here again with as much detail as possible and I or someone else will attempt to help you.
