The MOD sounds good, but we can't have two MODs that are the exact same. I guess we'll have to wait for Zypher to post the dev post for that MOD.
Code-wise, probably not. Functionality-wise, there's nothing too bad about having 2 MODs that can do the same thing; 2 similar MODs may have different features to offer.
Copy files from default directory [0%]
If I'm reading this right, I'm assuming you'll want your MOD to make a copy of the phpBB folder for every time someone makes a new "Free phpBB" account using this MOD? IMO that's really not a good approach since if a forum hoster has many users, that's a lot of space on the server to take up. A better approach IMO would be just to use extra GET vars.