I have it installed in the NWN folder. It's in the same folder as the nwnmain.exe file. I see however that I do not as you pointed out have the newest version. Thank you. I'll see if that resolves the issue. edit:Well now the tilesets are all showing up since I installed v2.0 but all my pallettes are vanilla pallettes. No items,placeables,monsters etc.
You can use the erf files coming with PQ to import blueprints for creatures, placeables, scripts, etc. in your module (in the toolset, click on File, then Import... and then select the appropriate file) OR you could just use one of the two Q_Base mods with everything already set up to start building.