The interface issue above is because the game has the wrong graphic. You are using Fo1's loot interface with Fo2, which doesn't work (as seen in your screenshot). You copy&pasted the whole art folder from the Fo1 master.dat, which is something you should not do, as I have written above. You also should *not* copy&paste the whole sound folder. Only sound/SPEECH/. Otherwise the game can get crashy again.
Other than that, the game can be installed like any other Fallout 2 mod. The repo folder is actually already setup like that. It already works if you just drag&drop Fallout 2's master.dat and critter.dat file into the Fallout2/ folder.
Other than that, the game can be installed like any other Fallout 2 mod. The repo folder is actually already setup like that. It already works if you just drag&drop Fallout 2's master.dat and critter.dat file into the Fallout2/ folder.