Geometric construction of modular functors from Conformal Field Theory

This is the second paper in a series of papers aimed at providing a geometric construction of modular functors and topological quantum field theories from conformal field theory building on the constructions in [TUY] and [KNTY]. We give a geometric construct of a modular functor for any simple Lie-algebra and any level by twisting the constructions in [TUY] by a certain fractional power of the abelian theory first considered in [KNTY] and further studied in our first paper [AU1].