Before installing the mods a few things needs to be setup
1 - Make sure that Morrowind is updated to the latest version, and that both expansions (Bloodmoon & Tribunal) are installed.
2 - Sign up at the Nexus. (LINK) - It's free and takes about 2 minutes. The Nexus site is the main source of mods used in this guide.
3 - Downloading and install NexusModManager (NMM). (LINK) *Install descriptions are found at the Nexus page if needed.
4 - Launch NMM
At the very first startup, NMM will search for your game(s). Let it finish, or cancel the auto-search and type in the Morrowind game folder path manually. Then you will be asked where to store the mod files. Any place will do.
5 - Make some coffee. Downloading and installing will take some time, but at the end you will get the result from weeks of tweaking and testing.
Proceed to the Mod-List
Curious if the result is worth the effort? - Here are some before/after screenshots.
*To take "before" screenshots, I would have to uninstall every single mods again, so I found some screenshots on Google and Bethesda's site instead, then I took a similar shot with all mods added. It's difficult to match the exact same shot with location and time of day, but these should be good enough to give an idea.