First, your "skin" files include a couple of subdirectories that aren't part of a skin's coding, and shouldn't be there. The .jalbum folder would be part of a specific album project, and the album folder would be the output from a specific project. Delete them before doing anything else.

Now, launch jAlbum and choose Tools > Open directories > Config directory. You will probably see a skins folder there - this is where all self-installed skins go, including updates to the bundled skins. If it isn't there, create it.

Now create a folder under skins with the name of your skin, like WardSkin. Copy your skin files and folders into it. It should now appear on the list of available skins within jAlbum.

Having said that, the chances of a 19-year-old skin working with current jAlbum are almost zero. The internal coding requirements have substantially changed since then. I predict a fairly immediate crash when you try to make an album with it. In fact, it might even refuse to load the skin.

Thanks Jeff, it tried and part of the skin worked.... I think it will have to go

For my skins, it'll take any file name for the favicon. These days, browsers understand .ico, .png, .jpg, and even .svg. The skin doesn't care which you use.