I'm trying to create an NPC using the presets/texture/morphs found in Ethereal Elven Overhaul, but whenever I attempt to edit a character in the construction set with that mod loaded I get a texture looking like this:
http://i206.photobucket.com/albums/bb230/Umpteenth/bug.png (eg sideways bars crisscrossing the texture)
I feel like there's probably a simple solution that I'm missing, so any help would be appreciated.

Are you using the bsa version? If so you will need to add the BSA to the archive list in the SkyrimEditor.ini.