OK, so I know I'm replying to a post from the first page of this chain, but hey, it's been awhile since I stuck my nose in the forum
Plus seeing an Elder Scrolls topic will always make me join in.
On the subject of the updated graphics; This is part of what is known as the TESRenewal Project. Basically, a number of volunteer developers have been working to revise Morrowind in its entirety, leveraging the improved game engine that was used for Skyrim. In other words, all the attributes, character models, weapon models and landscapes in Morrowind will take advantage of the updated graphics from the Skyrim engine. Thus the nick-name "Skywind."
While one of Bethesda's selling points for Skyrim was the use of a "completely new graphics engine" the truth of the matter is that the same, but iteratively updated engine has been in use for Morrowind, Oblivion and Skyrim. The actual developers are an European agency, Bethesda used the engine's coding tools, that have been continually updated, to modify it for each successive game. That's why that same group of volunteers are also working on "Skyblivion" a new version of yep, you guessed it, The Elder Scrolls IV: Oblivion.
http://tesrenewal.com/Speaking of Oblivion, there is currently a working version of Morrowind that was "Built-out" on the Oblivion version of the graphics engine. It's affectionately known as Morroblivion.
It's not the easiest install and is still fairly tweaky, but if anyone is interested in giving it a whirl here's the info.
http://tesrenewal.com/forums/oblivion/morroblivion-mod-releases/8114Please note, for all of the above mentioned current and future versions you need to have legally obtained versions of the original games installed.
TM