Last on my list truly is grabbing hold of some genuine sound / music enhancement/additions that have become really popular in the game.

can anyone point me in the right direction.

http://www.gamesas.com/topic/1446961-wip-morrowind-acoustic-overhaul/ seems like it will be great when finished, and it would cover all three points you are asking about. Until that is done, you could use Atmospheric Sound Effects or PirateLord's Expanded Sounds for environmental sound additions. For music, there is the Better Music System mod you could try out if you want.

I hope that helps a little bit....

Some stuff on YouTube(you will need to convert it) fits very well.

https://www.youtube.com/watch?v=KWusnohkH34

https://www.youtube.com/watch?v=T4ccYbqGJEA

https://www.youtube.com/watch?v=0LU9AeK8NmU

https://www.youtube.com/watch?v=wyEYe5y-zOM

https://www.youtube.com/watch?v=m2wjnjzJedY I think this is part of Morrowind Rebirth.

I also use Oblivions soundtrack because its amazing.