Yes, out of place.
Its not hard.
- Download OpenXCom.
- Copy and Paste your STEAM UFO contents folder into the openxcom folder (open x com requires graphics and sounds from the UFO game).
- Copy and Paste Piratez into the OpenXCom-Folder (/mods, see readme)
- Profit
Although that will probably work, it is
NOT the correct way to install X-PirateZ.
Please read the installation instructions!!!
You don't need to download OpenXcom at all, the X-PirateZ game is self-contained and comes with everything you need (except for STEAM UFO folder, which is the only thing you need to add).