I just thought I'll screencap a frame of your Youtube video just to show people who might be to lazy to click a link just how gorgeous your hack looks.
One of the things I love about it the most (other than the normals being imported with the model) is just how the textures actually seems appropriate and properly textured.
I'm 50/50 on the tree though, it looks nice and has an awesome shadow but it covers Mario up as he climbs it. I can imagine that can get pretty frustrating since the player might not know which side of the branch he is. I think you just made the tree part of the geometry and gave it a non-solid collision and put a tree behavior over it in TT64, if that's the case why don't you make the branch longer so the top of the tree is where the leaves are. It doesn't solve the problem fully but it does make it a little easier for the players to see themselves.
God job so far, I'm looking forward to seeing a full level from you.