I've decided to start reading some books in Morrowind. So I'll gladly take recommendations from you. Would be pleased if you could name a book and tell briefly what it's about. Best series? Best story? Comical stories? Drama? I'm all for it. Really looking forward to reading & finding the books in-game.

The Thirty-Six Lessons of Vivec tops a lot of people's lists, in an "esoteric religious text" sort of way. Good luck understanding it, but it feels unique and interesting at least.

The Firsthold Revolt has some fun plotting by an old favourite of mine from Daggerfall, Princess Morgiah, and A Game at Dinner for some equally nice plotting by her brother Helseth.

There's an awful lot more, of course. Pick one up at random and chances are it'll be good.

My favorites are:
http://www.imperial-library.info/content/mirror
http://www.imperial-library.info/content/cake-and-diamond
http://www.imperial-library.info/content/morrowind-chances-folly
http://www.imperial-library.info/content/gold-ribbon-merrit [sic]

This, but chances are you won't understand much of them at first. Anyway, you might be one of those people who don't understand them, but like them just because they are confusing.

Some of my favorites:

The Real Barenziah
A Game at Dinner
A Dance in Fire
2920 - long series
The Hope of the Redoran
The Third Door
A Less Rude Song

The last two are bard songs.

Story-wise I liked:
Hellgerd's Tale
Poison Song (Set)
A Game At Dinner
The Firsthold Revolt
2920 (Set)
A Dance In Fire(Set)
The Axe Man

Great stories, I found "Chance's Folly" bit creepy in end, but I guess she deserved it . "The Mirror" was quite sad. Are they Redguards?

Chances Folly
The Axe Man
Boethiah's Pillow Book..

There's the ever famous Lusty Argonian", kinda funny. If related to Morrowind, I would feel that books that said about Nerevar warring with the dwemer at Red Mountain, the truth of Nerevar or something to be the best as it suits the storyline greatly. Don't know if this is a spoiler or not.

While clearly written for gameplay reasons, the skillbook for medium armor (http://www.imperial-library.info/content/bone) is nonetheless quite entertaining.

http://www.uesp.net/wiki/Morrowind:The_Marksmanship_Lesson is also nice.

I never pictured them as such. Are Mindothrax and Jarrifax Redguard names? I always pictured them as Nords, for some reason.

The story mentions the "Bjoulsae tribes" as "horse men", which implies that they're Bretons (the Hammerfell side of the river is a jungle bordered by mountains and thus not very conducive to a horse-based culture); there's also a bit mentioning the Reachmen. I suppose the turban (and maybe the place name Ain-Kolur) would bring to mind Redguards, but aside from that it doesn't look like they're involved (or if they are, they're the other side in the battle).

The Real Barenziah
Poison Song
2920
Thirty-Six Lessons- Especially when you get to the REALLY hard to understand stuff, like Vivec might be aware he is in a game.

Fine, but when I think of intense melee combat, intensity on the battlefield, and tireless brawls, I don't think Breton. They are, after all, "slight of build".

I really love The Real Barenziah. Both my Oblivion and Morrowind characters always carry at least one of them at any time.