What is causing this problem is the folder structure when you copied the files to your LotRo folder. In your folder My Documents, you should find a folder The Lord of the Rings Online. In this folder should be one called UI, then in that one, a folder called Skins. In this folder you can have multiple skins, as long as they each have their own folder, with the accompanying folders for the definitions of your skin. The main skin definition file needs to be in the folder that you have for each skin. If the folder that contains the main definition xml file does not have the subfolders containing the rest of the .tga files, your skin will result as you see it in your picture even after restarting LotRo.