Connary's texture packs are really good, and he was working on a compilation that would ultimately retexture all of Morrowind. But first of all I have no idea what the status of that project is; the last update I'd seen myself was probably a year or more ago. Second of all, last time I checked I couldn't find his mods on PES but my memory could be faulty. Check the mod sites for Connary's stuff, and if you can find it, I would recommend using them. They improve the quality of the textures while keeping everything well-blended.