Readme.txt has the following:

1) Install all the files into the following directory
   {basepath}/sites/all/modules/tinytinymce
   
   ***********************************************
   It is VITAL that you use the correct directory.  
   The only correct location for this module is:
      {basepath}/sites/all/modules/tinytinymce
   Some modules will work if you put them in with the core modules, ie {basepath}/modules/..., however use of this location is deprecated.
   This module won't work there; it could crash your site.
   ***********************************************

In fact, you should be perfectly fine putting this in /sites/[sitename]/modules/tinytinymce.

Comments

Steve Lockwood’s picture

Steve Lockwood commented
Status: Active » Fixed

I'm sure you are right - the warning related to earlier versions of tinytinymce, which could crash the whole Drupal system if installed in the wrong place. I will tone the message down to a recommendation in future versions.

Anonymous’s picture

Anonymous (not verified) commented
Status: Fixed » Closed (fixed)

Automatically closed -- issue fixed for two weeks with no activity.