EXTRACTING/UNZIPPING MODS IS NOT REQUIRED/NEEDED.
VERSION 0.5.0.0 AND UP HAVE A DIFFERENT PROCEDURE TO INSTALL UNPACKED MODS (check 0.5.0.0 changelog)
If a mod doesn't work when zipped, then it needs to be updated.
It can eventually be used as unzipped, but system behind the unzipped mods is currently temporary. You can find a quick 'how-to' in the 0.5.0.0 changelog
AUTOMATIC METHOD (HOW TO ENABLE THE 'INSTALL'...
Guide to mod installation
VERSION 0.5.0.0 AND UP HAVE A DIFFERENT PROCEDURE TO INSTALL UNPACKED MODS (check 0.5.0.0 changelog)
If a mod doesn't work when zipped, then it needs to be updated.
It can eventually be used as unzipped, but system behind the unzipped mods is currently temporary. You can find a quick 'how-to' in the 0.5.0.0 changelog
AUTOMATIC METHOD (HOW TO ENABLE THE 'INSTALL'...
Guide to mod installation