OpenMW still can’t do all of this, this is one of the main reasons we recommend this instead. Has features such as a new per-pixel lighting system, new shaders, totally revamped water, distant land generation, etc. Install them in the order they’re listed! Also note that for Morrowind, you’re going to want a mod manager. So modding Morrowind is a bit more tricky than Oblivion and Skyrim. If you’re making a new game then it doesn’t matter. Save games might not import properly if you do. Once you have all your mods ready to go, you should avoid downloading new big mods (that have ESP or ESM files). Preferably the ones that will be listed below.
But first, let me list some tips that apply not only to Morrowind, but many other games too. The order in which you install mods is actually somewhat important, so I’ll list them in proper order.