Instructions
Select the texture project from which you have to unpack all contents.
Open your "Torchlight" installation directory, located on your main hard drive in the "Program Files" folder.
Double-click the folder called "Mods" in your "Torchlight" directory. Copy the texture project file into your "Mods" folder. If there is not a "Mods" folder, you can right-click and select "New Folder" to create one with that exact name.
Load "Torchlight" to test the texture project to see if it is to your liking.