Place the RedWolf folder in %appdata%\runic games\torchlight\mods\
Example, it should be something like C:\Users\Username\Appdata\runic games\torchlight\mods\RedWolf
If your appdata file folder is hidden or if you can't find it for some reason, go to start then click on run and type %APPDATA% to access your application data directory.
Many thanks to Ergonyx.
