Preparation
Before installing the mods, there are a few thing that 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.

When ready
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.
 

Before/After Screenshots

                      BEFORE                                                                                                         AFTER                      .