??? yes, you are doing it wrong. just play around a bit - it's pretty commonsensical tbh
To someone that's been modding this game for a while, yes, I'm sure it is.
wait wants a folder location for a .w3modproj file (that's where the program stores information) in the same folder there will also be folders with the actual files (.w2ent, .w2mesh etc) and a folder with the actual packed mod you create in the end.
yeah that's right, just select a folder where you want the mod to be saved in. (I always create a structure like this: If I want a new mod, say, "HiddenE3Mod.w3modproj" I make a new folder called "HiddenE3Mod" and select it. (e.g. D:\modingdir\wkitmods\HiddenE3Mod)
That means you haven't created a new mod probably.
Yes I have not created anything yet. LOL