Dhruin
SasqWatch
A number of sites have run stories on Morrowind 2011, a graphical update mod project. We originally saw it at Joystiq via a note from Omega but the official site has links to the files and everything you need. Graphical mods aren't new but, as I understand it, this is a single compilation of existing mods that work well together to produce a complete overhaul. In total, there's 4Gb of stuff so settle in for a lengthy process.
More information.
More information.