Say I use MCP (who doesn't) and I do update saves with Mash (a given to me) - you are saying that it is still best never to remove a mod during a play-through and if you do to then replace the plugin with another so that the rest maintain their relative load order? Is this why lock times was invented? That doesn't seem to jive with the convention in Morrowind modding where updates are given entirely new names (like version numbers).
Attempting a more complete information (but note that most of my information is about 2 years old):
Background: Your savegame consists of lots of references (i.e. things in the gameworld) that have changed during the course of your game. Each of these references is stored with a) the number of the mod it's from, b ) the number of the original reference within the mod, and c) the complete data of the reference (location in the gameworld, changed variables, etc.). So, if the mod "New Challenge" places a Daedroth in Seyda Neen, and "New Challenge" is the 6th mod in your load order, and the Daedroth is the 13th reference specified in this mod, and you kill the Daedroth and then save the game, then your save game contains the information "6 13 (complete data of the Daedroth, including that it's dead)".
Obviously, this leads to problems when the load order changes, because then "New Challenge" isn't the 6th mod anymore.
Morrowind, without the MCP, makes some effort to rematch the info from the savegame to the correct mods if the load order has changed. It can usually handle mods that are _added_ to the load order, but it has a lot of difficulties when mods are removed from the load order. In the example above, if you removed the 4th mod from your load order, so that "New Challenges" suddenly becomes mod number 5, then Morrowind would usually be unable to match the saved reference of the dead Daedroth to the correct original reference in the mod. It might either discard the saved data, or match it to the wrong original reference. This has the potential to create huge problems (when the saved data is applied to references it wasn't meant for), hence (before Wrye Mash, and before the MCP) there was the recommendation to never remove mods.
Wrye Mash can update the savegame to match a new load order. In the example above, Mash would recognize that the mod no. 6 (in the savegame) has become mod no. 5 (in the new load order). Mash would then change all references in the savegame that point to mod no. 6, to point to mod no. 5 instead. As a result, Morrowind can load this savegame without problems.
The MCP solves this problem by comparing the load order in the savegame with the new current lorad order, and re-match references according to the names of the mods they point to. Hence, as long as "New Challenge" keeps the same name, the MCP should always be able to match the reference correctly, no matter how many mods you add or remove before it in the load order. (Note: abot's post seems to indicate that the MCP can sometimes lose a reference under these circumstances. I don't think it does, and have removed massive mods during the testing of the MCP without problems, but I may have something, and abot's word is usually very reliable.)
One thing that the MCP cannot handle is _updating_ mods. Updating mods may change the order of referneces within the mod, so (in our example) the Daedroth might be reference no 15 in the updated mod, and reference no 13 might now be a plate leaning against Arille's shop. When Morrowind (with or without the MCP) now loads the savegame, it thinks that the saved data from the Daedroth (reference no 13 in the old version of the mod) belongs to the plate (reference no 13 in the new version of the mod). Hence, Morrowind will apply the saved Daedroth data to the plate (with potentially bad consequences), and the Daedroth will still be alive in the game (because the info that it has been killed isn't read correctly from the savegame). However, you _can_ use Wrye Mash to update mods. Wrye Mash will compare the old version of the mod with the new version, and try to match references between them. This process is a bit complicated, but it's explained well in Mash's documentation.
No plug and play as you go? This advice seems harsh (info not the giver). I would take it as rote that one should remash lists and remerge objects after each mod shuffle? Thinking on - is the advice to not remerge objects after that is done once too. Or if new merged objects needed then a new merge file? What about for updates.
After changing your load order, you should re-merge your objects. Otherwise, if you removed a mod, unwanted residual data of the removed mod may still be present in the merged objects. Or, if you added a mod, its changes to some objects may be lost if you don't re-merge the objects.
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This thread is helping me understand merging objects, but not how one goes about building a working load order and following the contradictory advice of:
1. Try to never remove mods.
2. Make sure to test all mods.
That would mean thousands of test saves and constantly starting over.
So what is the advice for building a working load order then?
I'm not seeing the contradiction. When I test a mod, I make a backup of my Data Files folder and of my last savegame, then I install the mod, test it (which may involve updating the savegame), and either keep it, or delete the Data Files and changed savegames and restore them from my backup.
The contradiction is only there if you expect to be able to add and remove mods without making backups of your data. That is never a good idea though, not even with Oblivion. While Oblivion is somewhat more robust with regard to load order changes than un-MCP'ed Morrowind, you'll still accumulate unused files in your Data Files, and may have overwritten files you wanted to keep.
That said, I actually _don't_ test out new mods (or only rarely), to me it's more fun to be surprised by their content, and extensive testing spoils the surprise. However, I wouldn't recommend this approach to anyone without good experience of editing savegames, since it has a high potential of causing trouble sooner or later