I have been searching google and these forums but cannot find the answer to this. For example, there are pillows on a bed. As of right now, they are interactive and I could accidentally "take" them into my inventory. I want to make it so they cannot be interacted with and is fixed in place like a piece of furniture. I just haven't been able to figure it out in the construction set menus.

I think what I am aiming for is to change a "misc item" into a "static."

LOL. I used to know how to do this. I used to know how to build things in the CS. But that was years ago. I'd like an answer to this question, too.

Maybe it's described in the Help documentation?

You can create a new static that just uses the model (.nif) file of a pillow. You may run into problems if you keep the same ID. You probably should create a new ID and and use that instead of the ID for the MISC type of pillow.

I believe there is some sort of "replace all of this object to this object" in the Construction Set. I forgot where it is, but I know I incorporated it into one of my first mods.

So all you need to do is make a static pillow and then use the "replace all with this" function. I wish I could tell you where it is, but I have no access to the computer I use for Morrowind right now.

What John said, it really is as simple as that. Hardest part is finding the right mesh to click on. If you're unsure, click on the object and the mesh button tells you the path/folder to follow. Be warned! Making statics is addicting.

What's up with all these "theories" about how to do it in the CS? Either you know or you don't.

What I would do is add a script to the pillow object itself that prevents the player from picking up the pillow. Look for the script "noPickUp" (I think that's what it is called), which is used on the Mask of Vivec in Gnisis. Add that to the pillow object, and then you won't have to replace every single reference. Granted, of course, it would be less processor-consuming to just have a static type, but I'll leave that judgment up to you.

If you want to go about the static method, right-click on the object-to-be-replaced in the object window, select "Info," and it will show you all the cells in which this object is placed and the amount of this object in each cell. Now you have to go into each cell, select an instance of the pillow in that cell (this is just a small shortcut). Go to "Edit" -> "Search & Replace." Here it should have the reference you selected and the "Current Cell Only" box should be checked by default. This is the feature you have to use for each cell in which there is a reference to the object-to-be-replaced.

Nopickup's a pretty good idea, too. But it was annoying not being able to pick up that damn mask!
Also, another option, if you want people to see the name of it but not pick it up, you can also just make it a new activator.
But don't make creatures into containers! That can lead to problems.