OK. So I have the kotor tool and I'm messing around with it. I read the read the read me for Projects, but it wasn't specific about the debug path. I need help on this please, and i need to know what a project is. thank you

There are two paths Debug and Build. You're provided with these so that you have a way to test your project before you package it for release to the public.

Generally, Debug = the override folder for the game, used for development and testing of your project, and Build = a folder where you want the files to go when you're sure it works the way you want, so that you can Zip them up and release them.