I have this same problem... Except the path is set up correctly, but all the movies in the path mentioned appear to be the original... I've only seen the opening movie and it is identical to the avi in the folder and the exact same video before I installed the movies. And everything in that folder is only about 720 MB whereas the download was 4.8 GB. I'm not sure what I'm missing here.
**UPDATE**
Apparently the movies aren't replaced, or at least not with the mod I selected as the next cutscene had a modded Cloud in it.