Any idea what's going on in these screenshots? (Actually the second one is just the same thing but from further away).

The hill north of Caius' house is see through. I've been to the other side and that isn't see through (though I didn't expect that anyway). It seems that there's a polygon (or group thereof) simply missing.

I've been playing the game with the Morrowind Sound and Graphics overhaul for the past 2 weeks and have never noticed this. As far as I know none of the other mods I'm using affect graphics or the area.

http://i20.photobucket.com/albums/b227/DeathZebraEX/MGEScreenshot1.jpg
http://i20.photobucket.com/albums/b227/DeathZebraEX/MGEScreenshot2.jpg

That's a tear in the landscape - this usually happens when 2x mods have adjusted terrain in the same area and it no longer lines up.

Unfortunately, I don't use any mods that alter terrain in and around Balmora, so I can't really suggest what it might be.

If you want to post your load order then I'm sure someone will be able to help you out

EDIT:

This should probably be in the Morrowind Mods forum, so it might be best to ask a Moderator to move it over for you.