I happened to stumble upon Morrowind 2011 on another game site, and I thought I'd share here. Allegedly, it combines 50 different graphics and game mods to make the game look completely stunning. You can view the changes in this video.
I haven't finished downloading it yet, but my god, 1.69GB must be something fantastic. It looks absolutely great. I can't wait to try it out and start some kind of new adventure. Only six more hours to go. ;)
Happy adventuring!
EDIT: There is trouble with installing this mod. There is no .exe and no readme because the mod author was sued by Bethesda. Divine linked a better mod with similar results several posts down.
[8:32:45 PM] Dusty Lens: Oh no, let me get that. Hello? Oh it's my grandma. She says to be roleplay.
[12:49:19 AM] Elgatodiablo: You know its nice that you have all that proof and all, Bacon... but I just don't believe you.
Amazing. I've never played Morrowind but wow some of the lighting graphics looks way better than Oblivion. This is a mod for Morrowind? If so I have really got to look into getting the game:)