Oh wait, TexGen does not load mod INIs at all, you need to mirror the [Archive] section from Enderal - Forgotten Stories.ini into Skyrim.ini.
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It will show an error "Error: Found stitched object LOD textures from earlier TexGen generation installed in game folder. It is recommended to uninstall all stitched object LOD textures generated earlier before generating new stitched object LOD textures."
This is a reaction to the included LOD, press Ignore.
I just ran it, finished successfully.
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It works, love you dude, thanks.