I wanted to get Morrowind for my laptop but I wasn't sure if it would run well enough, here's the dxdiag:

 Operating System: Windows 7 Home Premium 64-bit (6.1, Build 7600) (7600.win7_gdr.110408-1633)           Language: English (Regional Setting: English)System Manufacturer: TOSHIBA       System Model: PORTEGE R705               BIOS: Default System BIOS          Processor: Intel(R) Core(TM) i3 CPU       M 370  @ 2.40GHz (4 CPUs), ~2.4GHz             Memory: 4096MB RAMAvailable OS Memory: 3824MB RAM          Page File: 2070MB used, 5576MB available        Windows Dir: C:\windows    DirectX Version: DirectX 11DX Setup Parameters: Not found   User DPI Setting: Using System DPI System DPI Setting: 96 DPI (100 percent)    DWM DPI Scaling: Disabled     DxDiag Version: 6.01.7600.16385 64bit Unicode------------DxDiag Notes------------      Display Tab 1: No problems found.        Sound Tab 1: No problems found.          Input Tab: No problems found.--------------------DirectX Debug Levels--------------------Direct3D:    0/4 (retail)DirectDraw:  0/4 (retail)DirectInput: 0/5 (retail)DirectMusic: 0/5 (retail)DirectPlay:  0/9 (retail)DirectSound: 0/5 (retail)DirectShow:  0/6 (retail)---------------Display Devices---------------          Card name: Intel(R) HD Graphics       Manufacturer: Intel Corporation          Chip type: Intel(R) HD Graphics (Core i3)           DAC type: Internal         Device Key: Enum\PCI\VEN_8086&DEV_0046&SUBSYS_00071179&REV_02     Display Memory: 1696 MB   Dedicated Memory: 64 MB      Shared Memory: 1632 MB       Current Mode: 1366 x 768 (32 bit) (60Hz)       Monitor Name: Generic PnP Monitor      Monitor Model: Internal LCD         Monitor Id: TOS5091        Native Mode: 1366 x 768(p) (60.157Hz)        Output Type: Internal        Driver Name: igdumd64.dll,igd10umd64.dll,igdumdx32,igd10umd32Driver File Version: 8.15.0010.2125 (English)     Driver Version: 8.15.10.2125        DDI Version: 10       Driver Model: WDDM 1.1  Driver Attributes: Final Retail   Driver Date/Size: 4/30/2010 11:19:34, 6534656 bytes        WHQL Logo'd: Yes    WHQL Date Stamp:   Device Identifier: {D7B78E66-4306-11CF-847A-0D20A2C2C535}          Vendor ID: 0x8086          Device ID: 0x0046          SubSys ID: 0x00071179        Revision ID: 0x0002 Driver Strong Name: oem8.inf:Intel.Mfg.NTamd64:iILKM0_IAL:8.15.10.2125:pci\ven_8086&dev_0046&subsys_00071179     Rank Of Driver: 00E60001        Video Accel: ModeMPEG2_A ModeMPEG2_C ModeWMV9_B ModeWMV9_C ModeVC1_B ModeVC1_C    Deinterlace Caps: {BF752EF6-8CC4-457A-BE1B-08BD1CAEEE9F}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,1) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_EdgeFiltering                      {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_BOBVerticalStretch                      {5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(YUY2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend                      {BF752EF6-8CC4-457A-BE1B-08BD1CAEEE9F}: Format(In/Out)=(UYVY,YUY2) Frames(Prev/Fwd/Back)=(0,0,1) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_EdgeFiltering                      {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(UYVY,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_BOBVerticalStretch                      {5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(UYVY,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend                      {BF752EF6-8CC4-457A-BE1B-08BD1CAEEE9F}: Format(In/Out)=(YV12,YUY2) Frames(Prev/Fwd/Back)=(0,0,1) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_EdgeFiltering                      {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(YV12,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_BOBVerticalStretch                      {5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(YV12,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend                      {BF752EF6-8CC4-457A-BE1B-08BD1CAEEE9F}: Format(In/Out)=(NV12,YUY2) Frames(Prev/Fwd/Back)=(0,0,1) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_EdgeFiltering                      {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(NV12,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_BOBVerticalStretch                      {5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(NV12,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend                      {BF752EF6-8CC4-457A-BE1B-08BD1CAEEE9F}: Format(In/Out)=(IMC1,YUY2) Frames(Prev/Fwd/Back)=(0,0,1) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_EdgeFiltering                      {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(IMC1,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_BOBVerticalStretch                      {5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(IMC1,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend                      {BF752EF6-8CC4-457A-BE1B-08BD1CAEEE9F}: Format(In/Out)=(IMC2,YUY2) Frames(Prev/Fwd/Back)=(0,0,1) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_EdgeFiltering                      {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(IMC2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_BOBVerticalStretch                      {5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(IMC2,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend                      {BF752EF6-8CC4-457A-BE1B-08BD1CAEEE9F}: Format(In/Out)=(IMC3,YUY2) Frames(Prev/Fwd/Back)=(0,0,1) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_EdgeFiltering                      {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(IMC3,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_BOBVerticalStretch                      {5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(IMC3,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend                      {BF752EF6-8CC4-457A-BE1B-08BD1CAEEE9F}: Format(In/Out)=(IMC4,YUY2) Frames(Prev/Fwd/Back)=(0,0,1) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_EdgeFiltering                      {335AA36E-7884-43A4-9C91-7F87FAF3E37E}: Format(In/Out)=(IMC4,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend DeinterlaceTech_BOBVerticalStretch                      {5A54A0C9-C7EC-4BD9-8EDE-F3C75DC4393B}: Format(In/Out)=(IMC4,YUY2) Frames(Prev/Fwd/Back)=(0,0,0) Caps=VideoProcess_YUV2RGB VideoProcess_StretchX VideoProcess_StretchY VideoProcess_AlphaBlend        D3D9 Overlay: Supported            DXVA-HD: Supported       DDraw Status: Enabled         D3D Status: Enabled         AGP Status: Enabled

Would it play smoothly on Intel integrated graphics (4500hd) and how difficult is it to get Morrowind to work on Windows 7 (64 bit)? Would I be able to run most mods? Lastly, does it matter if I get the CD or download it on steam?

It will run fine. I wouldn't try to use any major graphical overhaul mods, but simple things like Better Bodies will work

I'd suggest buying it on CD as it comes with the CS so you can eventually learn to make your own mods. Also certain mods can be a lot easier to install on the CD version.

The Good:
You can use any texture replacer that you want, with no performance impact.
You can add almost any mod, and have no problems with performance.
Almost any mesh replacer will not slow you down.
There are tools and patches that can help you gain performance.
Most MWSE mods will work just fine.

The Bad:
You will probably not be able to use MGE for anything but the basics. (no Distant Land or fancy shaders)
Avoid mods that add lots of NPCs or tons of new objects (like fancy new trees) in the same area.
You might have to pull the Fog in some times, in order to keep your FPS high.

I run Morrownd on a very similar laptop to his, and it is possible to run Distant Land on lower settings without much of a performance impact. However, it is true that mods like MCA and other NPC mods will take a huge impact on performance.

Thanks for the replies