There use to be a really nice mod that had Morrowind armors available in Oblivion. These items were available at a store and NPC would wear them however, I can't find the mod anywhere anymore. What happened to it???

You are thinking of http://tesnexus.com/downloads/file.php?id=28245 which only makes them available in a store - NPC do not wear them that I'm aware of.

To get them as loot in encounters but not at a store the answer is http://tesnexus.com/downloads/file.php?id=35369.

EDIT: Removed for inaccuracy.

Theres one I can think of http://tesnexus.com/downloads/file.php?id=15063, you can buy the armours at IC Best Defence, and there are Ordinators wandering around IC wearing the same - this is an update from XTudo to the original. If you want the Morrowind Ordinators voices too theres a bit of work involved and you need Morrowind