It looks for entire archives, but the driver file isn't among the files. There's no way to pirate the game by shipping whole files (when quite a lot of the other system files are not included. Even then, the exe can't work without some form of illegal crack). But if that wasn't allowed, you could simply copy a file from the default folder, and then encode using ulgp / touphscript and so on.
If you look at the picture above, you can see the yellow entries are those the program has detected as being in the new custom mod folder (which I named REU, located inside data\0\REU). You can have as many folders in data\0 as you want - the program will detect them and update the relevant executable. For example, if the folder is "REU", then the exe will be named "0_REU.exe".
If data\0\CUS has only "battle.lgp" inside it, that one file will be used from the folder CUS, but ALL OTHER files will still be from their default position. Changing from one mod to the next simply means a drop down menu to another folder and clicking OK.
The first 4 entries are folders. For example, if you want to move "scene.bin" to a custom folder, you will need to include all files from the battle folder (minus magic.lgp and battle.lgp, which are still optional), along with kernel.bin (since scene and kernel work together).
This may seem like it's complicated, but I'll be making a video soon, which will clear up any confusion. It's actually ridiculously simple. The only small downside is that certain filenames have been changed (I was forced to). These are:
menu_us.lgp > menu.lgp
high-us.lgp > high.lgp
snowboard-us.lgp > snowboard.lgp
world_us.lgp > world.lgp
cr_us.lgp > cr.lgp
disc_us.lgp > disc.lgp
moviecam.lgp > movie.lgp
Personally, I think this is better anyway. They couldn't even get their - and _ consistent.
I may make I have made ChangeMod automatically detect these and rename if required.
Finally, if a folder called "mus" is present in the custom folder, this will be used for all ogg music files - instead of the default ones (which, again, were inconsistent between 1998 and Steam. SIGH. Steam is data\music_ogg and 1998 is a silly \music\vgmstream )