Figured it out. Had to open the .iwd file with winrar to get to the images folder inside of it. would be handy if bonecrusher stated that in his post instead of having to find it myself in the video he linked at the very end

Hey there. the readme says to place the files in the animated_camos.iwd folder, but for me it's just a standalone .iwd file, not a folder. do you just mean in the animated camo patch folder that contains the .iwd? Or am I missing something