I downlaoded MGE from http://tesnexus.com/ after seeing a video on youtube about morrowind 2011. I've installed MGE and edited some of the options but don't know how to actually install the options them into the game. I also recently bought morrowind and I'm kind of confused about how to use the mods.

I've also heard of shaders that make the game look better, I don't know how to use those either, I'm used to using a mod manager.

Scrap what you have and start over with http://www.gamesas.com/index.php?/topic/1216870-relz-morrowind-overhaul-sounds-graphics/.

It has guides and videos that explain EVERYTHING in detail.

Thanks.