Follow the guide HERE: http://vgtes.wikia.com/wiki/Morrowind

WITH the following differences in mind:

Before you install any mods, install ALL of the official plugins that you desire, as well as "fix" mods for them:
(This might be a fine fix mod, but I've never used it: http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=9133
 You even don't need to get the official plugins from elsewhere.)

Misc / Clothes
- Install "Unique Finery" AFTER installing "Robe Replacer" /and make sure to enable its plugin/
- New Boots of Blinding Speed  http://morrowind.nexusmods.com/mods/42042
- Unique Jewelry and Accessories  http://planetelderscrolls.gamespy.com/View.php?view=mods.detail&id=7335

Better Heads
- Ignore EVERYTHING here and install Vvardenfell Visages instead:  http://planetelderscrolls.gamespy.com/View.php?view=mods.detail&id=5883

WHEN YOU'RE DONE, BUT BEFORE YOU START YOUR FILE:
Install this: http://btb2.free.fr/morrowind.html#herbalism
And any of these that you desire: http://webpages.charter.net/manauser/morrowind/#minimods
(I recommend Demon Weapons, Grave Goods, Hide The Skooma, Show Ammo Dmg, Stolen Goods Fix

When you're done, download and install Wrye Mash and Mlox. Use Mlox to fix your plugin load order, and if it gives you any problems, take care of them.