So I'm looking into starting a Heavy Roleplay session of Morrowind, do something different. Namely a Traveling Merchant. I got the Pack Guar mod but I decided, as my Merchant is not going to be doing the lion's share of fighting, to see what Mods were offered in terms of "Hired Help".

I ended up installing http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=815, which when combined with MCA and CoM transforms Seyda Neen from a sleepy little dock town to something on the verge of crowding. Still, I picked up Juib and decided to hit the Bandit Cave for some more loot to sell in Balmora (As I'd tapped the trader in town out of his funds). MCA backfired in there a bit (Spawned a Thug with a Magic Sword), but worse...Juib didn't attack unless I initiated combat.

I can understand the reasoning behind it (So your companions don't go running into the Line of Fire), but I really wanted to play a more pacified role this time through. So is there a Companion Mod out there that reacts when I'm either struck or when an enemy comes near? I noticed http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=2005 (Which sort of fits the style of a wandering Merchant), but it doesn't do me any good if I've still got to be in the vanguard of any sort of violence.

If you don't mind running MWSE there is something called Companion initiative that does what you ask. There is already a companion set up with CI, but you can get it seperately and install it on any companion.

http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=4695

Are there any other CI enabled Companion Mods? I tried my hand with the CM Partners but the fact the Construction Set doesn't allow for Copy/Pasting I'd rather not spend all night typing in code. I'll get flashbacks from my first year in college.

Actually, the CS does allow copy pasting into scripts. You just have to use the hotkey shortcuts and not the mouse.
CTL + C = copy
CTL + V = paste
CTL + X = cut

Verrah easy that way.

Many thanks. That will save a lot of time.

Sorry for the Double Post but I've now encountered a new problem.

After my little Coding expedition (Where all I changed was the coding of the companions for CM Partners), I've created something decidedly...well weird.

Now, as long as I don't unsheathe my weapon - nobody attacks me. They aggro, run up...and put away their own weapons. The only positive is when the blade does come out and combat initiates, my companions now don't wait for me to begin attacking.

There are plenty of companion mods around. Some come with quests and acts like a real human, some have just some options and there are some which are pretty standard by means. Nowadays alot of companions use grumpy's companion script.
Anyway, if you look for a companion that is just more then a meat shield, which fights on your side and has even a role of themself, then look to the mods of Emma. I definitely recommend Constance, the bosmer thief, which comes with an own behaviour and quests of her own. Or look for the Lokken mod.
You can find Emma's mods at http://lovkullen.net/Emma/index.htm There you can also find grumpy's mods and Kateri's mod Julan, ashlander companion. Julan is also a companion with own quests and an own behaviour.
I also recommend http://jac.fliggerty.com/jasmine.htm from Jac, a redguard scout companion. Jasmine also respond to the mainquest and to the legion quests. Jasmine will have, just like constance, quests of her own and has an own behaviour.
And if you look for a mage companion, then you can either take a look to morgana at emma's site or to Kendra, a mage companion from http://baratheon79.rpgmods.com/companionmods.html.
Anyway, you can look to http://www.mwmythicmods.com/telesphoros.htm#23

I use myself 5 companions. These are: Beryl (mod from grumpy), Constance (mod from emma), Jasmine (mod from jac), Lady Death (mod from korana) and Kendra (mod from baratheon79). i've changed the hair from constance and kendra.

An "easy" way to have companions act like bodyguards is to change their class to guard. The drawbacks are that you can't commit any crimes where they can see you; if they do, they'll try to arrest you. And, you'll get the default guard dialog unless you filter it out. If you don't mind the extra dialog, going the guard route might be the best way. Just remember that even guards don't always attack first.

I'd like to thank everyone for their help in this matter.

I ended up shutting off CM Partners, mainly because I think my idea of a Traveling Merchant character was a bit undeveloped. In fact, I'm actually thinking about shutting off MCA as well as I really don't like the spawned NPCs with Magic Weapons that early in the game.