I first played Morrowind when I was about eight or nine, so the game was a bit hard for me to understand... Now that I am older it sounds like a good idea to go back and actually get past finding Cassius. The only thing holding me back is the appearance of the game. Is it possible to take the the engine for morrowind, and replace it with Skyrim's engine? I myself can say I would pay the usual 60$ for a Morrowind with the Skyrim engine. Would you?

I certainly would pay for that but I seriously doubt it will happen.

I'd buy that. Not likely to actually happen.

However, there are a lot of mods that greatly improve Morrowind's graphics.

There are already mods that make Morrowind look as good, if not better than Oblivion.

I will move this to Morrowind Mods so you can find the mods.

For beginners, I would recommend this mod: http://morrowindoverhaul.rpgitalia.net/
It is easy to install, and makes Morrowind less hard on the eyes. However, it will not be as pretty as Skyrim, or even Oblivion. You have to set your mind on the fact "Wow! This game was released in 2002, and look how good it looks for its age!" You can't focus on how the graphics compare to modern games, or even the engine. Focus on the good parts, and enjoy the game.

I never played Morrowind. I never would of found out about The Elder Scrolls if it wasn't for my spontaneous decision. I remember walking into the game shop looking for a PC game and I saw that Oblivion was only $50 (about half price here), and right away I wanted it. I didn't know what it was but I just thought it looked pretty awesome and so I purchased it. I spent so long enjoying that game, over 800 hours I put into that game over the years. I remember putting about 400 hours into the game and a year or two later I replayed the entire game putting another 400 hours. And the 400 hours each were both on my main characters. I also spent a lot of time on other characters as well.

I want to try all previous Elder Scroll games.

Well, Morrowind is only about $10 on Steam, so I would recommend you buy it (of course). I would recommend Morrowind Overhaul for a beginner (see my post above), and remember, to get full enjoyment out of this game, never skip the dialogue!