FFNX is the new driver now distributed with 7th heaven, there is now no need to enable a direct mode anymore so you can skip that part of the process.
I am not entirely familiar with how to package a models mod, but 7h follows the same structure I think as what is inside the direct folder in the game installation location, so drag those over to the mod location.
I suggest initially importing the mod as a folder, which will make testing far easier, once you have it working, then you can package it up into an iro for distribution.