I discovered this mod was the reason I quit playing Morrowind 3 years ago. It is a complete NON REVERSIBLE DISASTER. Worse, you will have to delete the entirety of Morrowind and most/all files and folders then edit the registry before you can install Morrowind again.
I was experiencing crashes. Save in the wrong cell and at best, a control/alt/delete and the mouse pointer would work again. Or I would get BSOD. Or the computer would completely lock up, have to be rebooted, and Windows would detect shut down errors upon rebooting. Other minor crashes such as missing textures were common.
I did a net search and complaints about this mod are a rash all over the net. I tried for a couple of days to get Morrowind running and keep it running. I finally had a bright dumb idea and contacted my techy who supplied me with the backed up Morrowind. He turned me over to one of his techs. I told the tech what problems I was experiencing and he installed a copy of my game on his computer.
His reply said it all.
Re: your morrowind. Run time errors by the hundreds. Not worth trouble shooting. You have a mod installed that has altered a significant amount of the static code, none of which has error checking sub routines. Even with subroutines installed, I see numerous graphics files are corrupted and will require an editor such as NifSkope to correct. Wrye Mash and MWedit also will be required. Extensive programming knowledge is strongly suggested.
You have a tech ... who is aware of Morrowind, to the point of investigating mod-related problems. Wow. I am envious.
I know it sucks that this problem happened to you, but ... I am still envious.
p.s. I had a similar experience with a mod called Wizard's Island. On the next run of Morrowind, my frame rate in my house in Balmora went from 30+ to ... less than one. That's right: seconds per frame, not frames per second.
What happened. I had MGSO installed. I had missing textures. Yellow blobs. So I noticed MGSO had a program called Options. I started it up and it gave all sorts of tweaks. LOD, amount of greenery, you name it. All sorts of stuff. So I just went by what it recommended. The program locked up. No exit from the series of screens of options. I closed the window and it told me the program hadn't closed properly. I started up Morrowind and it was DEAD. So I ran the options again. The only way to get it to not lock up was control-alt-delete. It just kept getting worse. It modified all my saved games. It made adjustments to the graphics display. And running a second program in the options made it lock up worse. No exit to the program. A couple of hours of fiddling and numerous crashes and it was hopeless. The program was garbage, obvious even to me. So I wrote techy and told him what was going on. He turned it over to one of his techs who did what I did, but on a computer a heck of a lot more powerful than mine with someone who knows what they are doing at the keyboard. Long story short, he unpacked my original Morrowind and gave me step by step instructions using the program WinMerge. Compare the original to the MGSO installation and copy over every instance where MGSO had altered a file. WinMerge did a heck of a job I would add. Placed the two side by side and simplified: Copy Left to right or right to left and the path of every file displayed so I couldn't mix them up. When I was done I had it back to the way it was before I ran the options. Morrowind started back up with the same missing textures but it ran. MGSO is still installed and that tech said he would get back to me on how to entirely remove it.
As for being aware of Morrowind and mod problems. His business is data back-up and trouble shooting of his customers computers and programs. Techy was one of the leads on the team that designed the HP 3000. His techs are all pro trouble shooters trained in all platforms and operating systems. While they are doing back-up he wants them to play games, install and trouble shoot programs. Be hands on familiar with every program and problem they may encounter. They went private years ago. No longer in the phone book. Too many customers wanting their services. I think one or more of his senior techs are retired Microsoft engineers that while away their quality time on his super computers, playing games, doing speed runs and so on.