I have noticed that skyrim's preference file are in my documents folder instead of inside the skyrim's folder. SO, I assumes that mods would be installed therein 'My document''s skyrim folder than what is done in previous elder scrolls game?
No, only the ini files and saves are there. Any mods you install will need to go in your Data folder. Just like Oblivion and the Fallout games, if you used mods for any of them.