I used it myself and for me at least, it didn't work with custom races as default, if you can't get it to work normally, open up the CS and open a race esp(for custom races) or just plain oblivion esm, click "characters--->hair", then open up "characters-->race" to another window at the background. Start by creating new hairs in the hair selection, make them playable and add the soya textures as the finishing touch, give the hairstyle a name and then save it, after that, move over to the race menu, click the race you want to have the hairstyle/styles, open up "body data" tab, then drag and drop the custom hairstyle/styles to the "hair" slot in the menu. When you're all done, click ok on both hair & race tabs to close them, then save the esp file and see if it's working. REMEMBER to enable the hair as playable and enable for the male/female aswell depending on do you want just one, or both sexes to have the hairstyle available. If you forget either one of these, the hairstyle won't show up. Hopefully this'll work for you.