@d0o0m:

… or must they reside within the Falcon install folder?

Yes

@d0o0m:

The Balkans Terrdata.7z does not come with an install README - is there a guide for basic terrain installations someone can point me to?

You are confused by differently parts of the addon.

The Terrdata.7z you’ve downloaded is the same (but has WIP autogen trees)
as the one which is provided within Balkans Theater of Operation for BMS 4.33.

Beside inside the Balkans_433_community.zip you’ll also find install instructions for that theater here:
https://www.benchmarksims.org/forum/showthread.php?23469-Balkans-Theater-of-Operation-for-BMS-4-33&p=338289&viewfull=1#post338289

Once you’ve installed that theater and confirmed it’s working,
then you could decide if you want to try Rudy’s autogen trees WIP by …

rename \Data\Add-On Balkans\terrdata\misctex to misctex_orig
rename \Data\Add-On Balkans\terrdata\terrain to terrain _orig
rename \Data\Add-On Balkans\terrdata\texture to texture _orig
(or move them away to another drive)

Then copy the those 3 folders from Terrdata.7z to
\Data\Add-On Balkans\terrdata\misctex
\Data\Add-On Balkans\terrdata\terrain
\Data\Add-On Balkans\terrdata\texture

Cheers,
LS