Vality, is there any possibility to adding some form of underwater seaweed/grass in the future?
It's possible to add more seaweed yes, but the generator doesn't generate anything below sea level. There was a work around that Yacoby told me, but it's been a while so I've forgot what it was, I'll have to ask him when I get around to it. I didn't have any plans to do an underwater mod, but yeah it is possible, I'll think about it once I've released another version.
As for updates on this mod, I know it's been a while, but I've been busy with other things, I'm in no rush to release anything soon so please be patient. Right now I'm working on my Skyrim mod, which is going quite well, and playing a few new games - Fallout 3, Fable 2, Far Cry 2 - all awesome games, so it may be a while before I get back to my other Morrowind mods. Also, my new website is almost finished, it's pretty much all uploaded to a new host, just got a few pages to go, my googlepages site is back till I finish the new one.