First, try setting the draw distance to about 52- I've found that, width or length, you'll be able to see any part of morrowind from any other part by using that draw distance. Morrowind with all it's expansion uses no more than 52 cells in any given direction. However, be warned that looking in the direction of Solththeim will casue some lagging or stuttering, even on modern computers that can play Morrowind flawlessly.
If that's not working, you'll need to get a patch/mod for MGE, since it doesn't come with Solthseim Distant Land Textures for some reason. A Google search will help you out with this better than I can.