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I know Skyrim allowed you to install that through Mod Organizer, but do I need it or do I just need the main files in the root of the .rar file?
Extract all files from the .rar and put those in the root folder (where Oblivion.exe is located). Let the Data folder merge with the existing Data folder. In it, a new folder structure called OBSE is being created, containg the .ini for OBSE. OBSE plugin files will go here in yet another seperate folder called plugins.
Installing the Journal mod can be done in 2 major ways: OMOD and manual.
OMOD:
Just follow the installer's instructions. It is recommended to use Wrye Bash and create a BAIN installer file. An alternative is Oblivion Mod Manager. MO is not recommended.*
Manual method:
By default it will match a vanilla or DarnUI look.
* The current version of MO2 does not support the Steam version of OBSE.
I guess you could rebuild the archive yourself like described above, pack it into a .zip/.rar and let MO2 handle its placement. I don't know if this works, though. I never used MO.