Actually I managed to make it work (so far) - mistake was mine: I had all mods on the list active while this screen:
http://s1383.photobucket.com/user/kinguard/media/divisionmodchart_zpskoq6yjk4.png.html
presents clearly that some should be inactive.
I've also downgraded XN to v1.51 (GOG) but that might be irrelevant.
Regarding XCE, this page:
http://www.nexusmods.com/xenonauts/mods/8/?
says that you need to have XCE:
So I didn't know it can run on base game version. Are you sure that it's the right way to go?
I've also found it very important to apply this QUICK FIX:
as otherwise I had problems with unarmed Aliens and crashes during AI turns.
Hope above helps someone.
Also - great thanks to the author of the mod for the awesome job he has done. Cheers m8!