I play Morrowind on PC | Win7 with MSGO + dozen additional MODs. It was a pain to get it all working but it runs stable and without problems.

I'm affraid that if the hard drive of my PC would somehow break or the PC would catch a virus and I have to reinstall Win7 I'll never get it working this way.

The Morrowind folder is tough when it comes to copying and making duplicates – everytime I try new MODs or a new setup I duplicate my MW folder to test the new data, but is it the only folder I need to backup?

I have several questions to the tech-experts here:

1. Can I .zip and backup my Morrowind folder to an external hard drive, format my internal hard drive, copy back MW folder, unzip the file and play the game?

2. All my saves are inside Morrowind folder, but are there other files somewhere on the PC – something like a registry file that needs to be backuped too?

3. I have the GOTY edition and the disc is in drive all the time, think it increases the chances it could be damaged by the constant use, heat etc...

Is there a legal way to play MW without the disc (by copying everything to the hard drive) or can the disc be legaly copied for personal use only, so I can play with the duplicate and box the original?

Data Files is the most important part of your modded install. However, you can back up the entire game directory and use that later.

After you get the new drive or OS or whatever installed and ready to do, then install the base game (so the registry knows it's there and where it is) then just copy the archived Morrowind Install to the new install and you will have everything back.

Note, once the game is installed, you can even make multiple copies of the install directory and play each of those separately. Nice way to test new mod mixes.

Thank You, and how about 3.)

Morrowind requires that the disc be in the drive.
Any methods that might circumvent that aren't for discussion on the forums.

If taken care of (protect from scratches) your disc should have a long life span no matter how much you use it.
But if your disc ever does start getting worn out in the future, you could always get it on Steam.