In the new window click the 'Local Files' tab and then click 'Browse Local files'. More experienced users can try their hand at moving the folder into the right directory - a new desktop shortcut for the BAT file will need to created then. If it is somewhere else then the easiest way is to delete the folder and it's desktop short cut and install again.
\Medieval II Total War\mods\MyFavoriteMod. Make sure the path to this folder looks similar to this. The mod has been installed into the wrong folder: to check, simply right click the mod's original desktop shortcut and choose 'open file location'.Underneath a list of possible reasons why the short cut method will not work after creating the kingdoms application file: