I seem to have the same type of problem with Mount and Blade Warband Steam version 1.166 when installing the files and patches. It loads, I get an error similar about missing meshes. I have to hit alt tab enter to get at the error to close it. No matter what I do, the warband version just does not want to run without the missing or invalid or whatever errors.
TLD works fine though my install of Mount and Blade 1.011 (using the higher res EX version). I'm at day 100 or so and having a blast, no errors, the movies play. The only thing if I approach a settlement I'm only wearing pants and have no gear. The inventory is intact however. If I choose another approach option though, I'm wearing all my clothes and gear.
It is interesting to explore the world of JRR Tolken as envisioned by the mod designers, exploring the various lairs of evil, imagining myself living or at least picnicking in one of the idyllic Elven villages with the trees and the fresh greenery. I had to turn the gamma way up on my monitor, those lairs of evil are so dark the first thing that happened in Isengard after successfully sneaking in was to fall in a great pit of blackness I could not climb out of. After turning the gamma way up, I could at last see all the wickedness there.
The Hornburg and it's glittering caves were very impressive, and a nice touch. I do not know if it is with the scope of the mod to actually have adventures in them with the bots, but it is very nice to tour them nevertheless.
I like the way the economy works with not being able to equip enemy gear, but selling their ash and trash instead. Also the before I understood how the gifts worked, it was a challenge to balance Beornbucks with what I need to do to get resource to pay my elves with.
The crafting, well I'm glad to learn at least it does not work at this time, I'll stop putting skill points into it. If this mod is still being worked on, keep it up.
EDIT
--When I get back to my computer where the game is on I'll get the exact error under Warband (I suspect it might be the latest version 1.166 update on Steam but who knows, )
--Since TLD works fine under Mount and Blade 1.011, it has not been really that much of an issue for me
--I have a lot of respect for the effectiveness of the warg riders, they seem to do a lot better than in the moovies