I haven't tested the program, but according to the comments given here it's working in a rather simple way and I want to give a few comments.
1) crediting
If the program uses the work of someone else, then it should give proper credit if that other work is freeware (that is the rule for the forums here, and failing can get the resource deleted). I suggest that the OP adds any such credit to the original topic.
If the resources used are not freeware (I can't tell because I don't know the names given here) then this is the same as pirating the software.
2) "security by obscurity" doesn't work.
Any encryption can be hacked, and if no one knows which encryption was used then no one can check if that encryption had already been broken - and the hackers are usually so up.- to - date that they only need a few hours to identify the algorithm (as seen above), so the obscurity only works if the target audience is without real hackers.
And all current encryption methods (at least the better ones) know that and work by making a difference between the internal, true encryption-key (which is needed to encrypt data) and a public key (which can be used to access but not change the data). And you can't get the internal key from the public key without a lot more effort than its usually worth.
3) The main problem with any encryption of game data
ANY form of encryption of game data to prevent resource theft has an extremely big problem: RPGM needs to be able to read the data to allow playing of the game.
Which means that it's basically impossible to protect the resources from the player using the game.
Decrypting the data to a different folder only works as long as no one knows which folder that is - and as said above that's easy to detect in modern operating systems.
If the decryption would have been done not to a different path but to a hidden (!) RAM-Drive, then that would have been a lot better (not perfect, because even then a memory checker would have been able to locate the resources - but that would be a tool that is rather uncommon and requires quite a bit of work to get the resources out, so it would be worthwile the effort)
A real, working encryption would require the files to be stored encrypted and having the decryption done inside the game engine - that would be a lot better, but the neccessary scripts and DLLs will slow down gameplay and increase lag.
So to anyone looking for a protection against resource piracy: That isn't easy, and if someone claims to have a perfect solution then that is (as often the case) too good to be true...
If the decryptor part is given as scripts to be included in the game, then you have at least a chance of stopping the script-kiddy-pirates (those who don't have real knowledge about encryption processes), but not if the decrypter is an external program wrapped around the game...