Look I just want to know the best/easiest way to configure this thing so I can play Morrowind again. Please.

"Best" is going to be different for every different computer. It also depends on how many features of MGE you want to use.
MGE questions should all be asked in the http://www.gamesas.com/index.php?/topic/1204129-morrowind-graphics-extender-mge/.