First to set the Battle Mods up you need to open up the Config file in the FFVII folder using notepag. Then add the line. mod_path = C:\Program Files\Square Soft, Inc\Final Fantasy VII\mods\Battle\
This replaces Mod_path = none
Then create the folder Mod in FFVII folder then the Folder Battle in the Mod FOlder.
Here are the files to place in this folder