How to install skyrim realistic overhaul

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If I continue on with the install, I get another warning message that says bad things could happen if I continue.

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When I right click on the data folder and select the option to create a data directory, the warning message does not change to the green Look Good. If I try to install them using MO, I get the red warning message that the data directory doesn't exist. Got a question to get clarification on how to install the SRO files. I'm also using Skyrim Realistic Overhaul for the first time. I'm using the STEP guide on Classic for the first time.