I've just installed the Morrowind Sound and Graphics Overhaul, and it's working fine. However, there's one issue. Some armor pieces are glowing white. So far I've seen it happen on a few pieces of steel armor and a few of the pieces on the daedric armor. There are also some rocks that are a little too bright white glowing. (some of the rocks in Balmora)
EDIT: There is also one more issue. My anti-virus removes the Morrowind Code Patch.exe thinking it's a virus. This (I believe) has destroyed my world map, which is now displayed as the zoomed-out TR-friendly one, but the markers and my location is based on the normal map size...