I wanted to mention several ways to improve Morrowind by modifying Morrowind.ini. Beware that you may only modify this at your own risk, and always make a backup first.

Improving Performance

1)Backup your current Morrowind.ini
2)Now open it with a text editor
2)Go down, look for UseQuadratic=x and set it to 0. 0 is no and 1 is yes.

This will turn off Quadratic Lighting, which supposedly will improve performance.

Antoher way would be:

1)Again, backup your Morrowind.ini and open it with a text editor
2)Locate the lines which say the following: Interior Cell Buffer and Exterior Cell Buffer. Those numbers that come with these line are representative of your computer memory supposedly, so now place the amount of memory you want to each one, and that should give you some performance boost.

If none of this work too well, purchase a Radeon 9800, that should work too.

Yes to All command

if you use a lot of mods and get tired of pressing 'yes' everytime a mod changes anything, you can add a 'yes to all' button by doing the following:

1) Backup / open Morrowind.ini
2) Under "General" place this line: AllowYesToAll=1

That should do it, and save you a lot of time.

I hope these suggestions proved useful, however use them at your own risk.