2. The BiG_World_Setup_7.0.exe does download everything you need.
Jarno! thank-you so much for the very informative post. Your help was exactly what I needed and on your suggestions the corrections fixed all the problems.
I don't know why but somewhere in the documentation I got the impression that BG2 should be installed in the root of BG1. I did everything you suggested and it went off without a hitch. I have to say that installer is completely awesome and I came to BW at the right time =p I've played a heavily modded Oblivion for a while and I can only wish we had something like that to make the very tricky Oblivion install that much better
Maybe someone could include your answer to my directory install question in a FAQ or the PDF because it's never answered anywhere. It's probably become old hat now to all you guys who've worked with BW forever but to someone new it's not very obvious.
Thanks again