Here is a screenshot to demonstrate the issue clearly:
http://i40.tinypic.com/rwnua0.jpg
And my load-order, so that someone can hopefully pin-point the problem:
[Game Files]
GameFile0=abotWaterLife.esm
GameFile1=Aduls_Master_Mod.esm
GameFile2=Bloodmoon.esm
GameFile3=Havish.esm
GameFile4=Hilgya the Seamstress.esm
GameFile5=Morrowind Patch v1.6.5-BETA.esm
GameFile6=Morrowind.esm
GameFile7=Siege at Firemoth Fort.esm
GameFile8=Texture Fix - Bloodmoon 1.1.esm
GameFile9=The Undead.esm
GameFile10=Tribunal.esm
GameFile11=TR_Data.esm
GameFile12=TR_Map1.esm
GameFile13=TR_Map2.esm
GameFile14=abotWaterLifeTRaddon.esp
GameFile15=adamantiumarmor.esp
GameFile16=Aduls_Arcane_Armature.esp
GameFile17=Aduls_Leggings.esp
GameFile18=Aduls_Leggings_Bloodmoon.esp
GameFile19=Aduls_Leggings_Tribunal.esp
GameFile20=Alakazar's Lamp_no_music.esp
GameFile21=almalexia armor.esp
GameFile22=Amulet of Scrye.esp
GameFile23=Animated Morrowind 1.0.esp
GameFile24=Antares' Creatures - Cecaelia.esp
GameFile25=Apostates of Oblivion_2.1.esp
GameFile26=Appropriate Greetings M - T - 1.5.2.esp
GameFile27=AreaEffectArrows.esp
GameFile28=Art Of War Museum (Arms&Armor).esp
GameFile29=AscendedSleeperSFX.esp
GameFile30=Atronach Expansion X.ESP
GameFile31=Balance - Character.esp
GameFile32=Balance - items.esp
GameFile33=Balance - Magic Effects.esp
GameFile34=Balance - NPC Spellcasting.esp
GameFile35=Balance - spells.esp
GameFile36=Barabus' fireplaces 2.esp
GameFile37=BB Dark Brotherhood by Westly.esp
GameFile38=bcsounds.esp
GameFile39=Better Bodies.esp
GameFile40=Better Clothes_v1.1.esp
GameFile41=Better Propylons MI.ESP
GameFile42=Better Skulls.ESP
GameFile43=BetterClothesForTB.esp
GameFile44=BH_Argonians.esp
GameFile45=BH_DarkElves.esp
GameFile46=BH_Imperials_M.esp
GameFile47=BH_Redguards_M.esp
GameFile48=BH_WoodElves.esp
GameFile49=Blight Bounties.esp
GameFile50=BM-Fixes.esp
GameFile51=bones.esp
GameFile52=Books of Vvardenfell_2.0.esp
GameFile53=Cali's_BB_V.2_Dryad_Dresses.esp
GameFile54=Caves of the bitter coast v 1.1.ESP
GameFile55=CB-illusionbolt1.0.esp
GameFile56=Chalk30-Base.esp
GameFile57=Clean Aduls_Arsenal.esp
GameFile58=Clean Aduls_Leggings.esp
GameFile59=Clean Aln'Baldrahn.esp
GameFile60=Clean Better Daedric.esp
GameFile61=Clean Deepest Chasm1.1.esp
GameFile62=Clean EB_FemaleVampireOutfit.esp
GameFile63=Clean Lights_300_V4.esp
GameFile64=Clean Welcome to the Arena!.ESP
GameFile65=Clean_Templar_Pauldron_Fix_v11.esp
GameFile66=Creatures Great House Dagoth Patch.esp
GameFile67=Creatures.esp
GameFile68=Dagger of Symmachus.esp
GameFile69=DagonFel_Well_v2.esp
GameFile70=DN_AshVampires.esp
GameFile71=Dracus's Durzog Armor Tribumal V1.1.esp
GameFile72=Dragonbone Armor [v.1.2].esp
GameFile73=Dulsya Isle.esp
GameFile74=Dwarven creatures.esp
GameFile75=Dwarven Spectre Additions.esp
GameFile76=EBQ_Artifact.esp
GameFile77=EmmasKhuul.esp
GameFile78=entertainers.esp
GameFile79=Exotic Imports by Westly.esp
GameFile80=Expanded Sounds.esp
GameFile81=farrp_Quivers-FletchingKit_V2-5.esp
GameFile82=Fligg's Slave Mod.esp
GameFile83=Frost_atronach_solsthiem.esp
GameFile84=Gameplay - Dialogue.esp
GameFile85=Glowing_Mines.ESP
GameFile86=Go To Jail 3.5 - T B.esp
GameFile87=Great House Dagoth ( Master Index Compatibility ).esp
GameFile88=Great House Dagoth.esp
GameFile89=Greater Undead.esp
GameFile90=Haunted Tombs v1.06.esp
GameFile91=Havish Mini Patch.esp
GameFile92=Healers.esp
GameFile93=Hilgya the Seamstress Expansion 1.esp
GameFile94=IceNioLivRobeReplacerALL.esp
GameFile95=Ice_ElegantGowns.esp
GameFile96=Illuminated Order v1.0 - Bloodmoon Compatibility Extras.esp
GameFile97=Illuminated Order v1.0.esp
GameFile98=Key Replacer Trib & BM.esp
GameFile99=Kn-PowerToThePeople.esp
GameFile100=KS_Julan_Ashlander Companion_1.3.esp
GameFile101=LeFemmArmor.esp
GameFile102=Less_Generic_Bloodmoon.esp
GameFile103=Less_Generic_Nerevarine.esp
GameFile104=Less_Generic_Tribunal.esp
GameFile105=LeveledMagicka.esp
GameFile106=LGNPC_Aldruhn_v1_13.esp
GameFile107=LGNPC_AldVelothi_v1_20.esp
GameFile108=LGNPC_GnaarMok_v1_10.esp
GameFile109=LGNPC_HlaOad_v1_32.esp
GameFile110=LGNPC_Indarys_Manor_v1_45.esp
GameFile111=LGNPC_Khuul_v2_01.esp
GameFile112=LGNPC_Khuul_v2_10.esp
GameFile113=LGNPC_MaarGan_v1_11.esp
GameFile114=LGNPC_NoLore_v0_83.esp
GameFile115=LGNPC_PaxRedoran_v1_12.esp
GameFile116=LGNPC_Pelagiad_v1_13.esp
GameFile117=LGNPC_Pelagiad_v1_21.esp
GameFile118=LGNPC_Secret_Masters_v1_21.esp
GameFile119=Lgnpc_SN.esp
GameFile120=LGNPC_SoulSicknessPatch_v1_00.esp
GameFile121=LGNPC_TelMora_v1_11.esp
GameFile122=LGNPC_TelUvirith_v1_10.esp
GameFile123=LGNPC_VivecFQ_v2_03.esp
GameFile124=LGNPC_VivecRedoran_v1_42.esp
GameFile125=MagickaRegen-v20.esp
GameFile126=Mashed Lists.esp
GameFile127=Master Thief's Privileges 1.2.esp
GameFile128=master_index.esp
GameFile129=MDP Compilation.ESP
GameFile130=MEMT_1.0.esp
GameFile131=MergedMods.esp
GameFile132=Minions of House Dagoth - No Undead.esp
GameFile133=Moon-and-Star.esp
GameFile134=Nasty Camonna Tong.esp
GameFile135=New Argonian Bodies - Clean.esp
GameFile136=New Khajiit Bodies - Clean.esp
GameFile137=NEWbloodmoon_begin.esp
GameFile138=NewBlood_MwTbBm1.1.esp
GameFile139=Nudity Greeting Expansion V1.esp
GameFile140=NV_BB_Imp_female_Armour.esp
GameFile141=NX9_liches.esp
GameFile142=Of Love and Ignorance.esp
GameFile143=P.R.E. v4.0.esp
GameFile144=PCC_Knaarus_02.esp
GameFile145=Pearls Enhanced - Colored Pearls Add-on.ESP
GameFile146=Poe Lighthouse.esp
GameFile147=Redaynia Village.esp
GameFile148=ReptileInseparableSiblings.esp
GameFile149=Scrolls of Khartum.esp
GameFile150=Sea_of_Solstheim.esp
GameFile151=SF NPC111 - Hilgya Exp1 Addon.esp
GameFile152=Silt Strider Armor - Ashlander Guards.esp
GameFile153=Sixth House Advanced 2.1.esp
GameFile154=sm_creatures_02.esp
GameFile155=sm_DwemerStaves.esp
GameFile156=Sol-Weather Tweak.esp
GameFile157=Solstheim Sauna at Thirsk.esp
GameFile158=South Wall.ESP
GameFile159=Starfires NPC Additions ver-1.11.esp
GameFile160=Telos Rin Graveyard.esp
GameFile161=The Neverhalls.esp
GameFile162=The Sable Dragon.esp
GameFile163=The Shrine of Mephala by Westly.esp
GameFile164=The Tribe Unmourned (GHD).esp
GameFile165=The_Vvardenfell_Libraries.esp
GameFile166=THTWG - Framerate Version.esp
GameFile167=TLM - Light Sources (Natural Water).esp
GameFile168=TLM - NPC Light Sources.esp
GameFile169=Tome of Spellmaking.esp
GameFile170=TravelingMerchants_v2.2.esp
GameFile171=TVwofs.esp
GameFile172=Unboarable Rieklings.esp
GameFile173=Undeads - Skeletons Arise Merged.esp
GameFile174=Unique Ghosts - M - T.esp
GameFile175=UniqueFinery_NoRobe.esp
GameFile176=Vampire Realism II - BM Add-On.esp
GameFile177=Vampire Realism II.esp
GameFile178=Wanderers of Solstheim.esp
GameFile179=Weather Effects.esp
GameFile180=WeatheredSigns.esp
GameFile181=Well.esp
GameFile182=Westly Presents_Aureals.esp
GameFile183=Westly Presents_Half Races of Tamriel_X.esp
GameFile184=Westly's Master Headpack X.esp
GameFile185=What Thieves Guild.ESP
GameFile186=wl_dockclutter.esp