I recently installed Morrowind on my Windows 7 Home Premium 64 bit laptop, but hadn't gotten a chance to play it until recently. When I installed it, I had copied and pasted my old save files into the save folder from my Windows XP back in my hometown, but they won't save correctly. I can load my save games fine but when I try to save them it says something to the effect of "temp file cannot be replaced". Is this more an issue of the fact that I imported foreign save files or that I am running the game on Windows 7? Furthermore, if I can get the compatibility tool of Windows 7 to fix my issue for me (which so far I haven't been able to), how can I import my addons from my original game?

I think it's a 7 issue. Try installing Morrowind to a directory other than Program Files. For instance, make a directory on the C: drive called Games and install it there.

Alright, so I did that and now it won't even start up because "binkw32.dill file is not on this computer".

It may not only be that: I find that Win7 keeps setting the write-protect on all my directories. I unset them, check again a few seconds later
and it's back to read-only. Something about the whole drive security settings - Advanced - and a box with Replace all child object permissions
with inheritable permissions from this object.

I'm getting just frustrated enough to think about buying another copy of my old fried motherboard / cpu and installing Windows XP again.
It may be no longer supported - but I could still run my old games on it (until I tried to upgrade it for 11-11-11).

Well thanks for the advice but I just decided to start a new game over instead of trying to get all my old settings back. I might appreciate the game a little more if I don't have everything at my fingertips once again. Plus I don't want to waste hours of time trying to reconfigure files and such on my hard drive only to have myself compromise something important by mistake. I appreciate the insight however and will certainly come back here for help in the future.