There are some floating rocks around the marked area:
http://www7.pic-upload.de/28.01.12/kxrkvq537j4.jpg
I have 2 holes in Balmora, see them in front of this screeny:
http://www7.pic-upload.de/28.01.12/4a2ekcmmf55.jpg
Since I cannot see them with MR in the CS, it seems to be another incompatibility issue. But it is not from Expanded Sounds this time. Still under investigation.
It's a real bummer, that MR is not compatible with some of my favorites like Morrowind Crafting and Children of MW...
http://www7.pic-upload.de/28.01.12/kxrkvq537j4.jpg
I have 2 holes in Balmora, see them in front of this screeny:
http://www7.pic-upload.de/28.01.12/4a2ekcmmf55.jpg
Since I cannot see them with MR in the CS, it seems to be another incompatibility issue. But it is not from Expanded Sounds this time. Still under investigation.
It's a real bummer, that MR is not compatible with some of my favorites like Morrowind Crafting and Children of MW...
Fixed the rocks, thanks!
Regarding the holes I read somewhere that it might be caused by the engine, that really can't handle too many references. I've had that specific issue too during some playthroughs, but during 80 % of these there's no holes to be found. It's kinda strange really. Try start a new game and go to Balmora, if the issue is still present you'll have to repeat that step.
I know that MR have a lot of issues with other mods, nothing I can do atm really. Later on I might be able to take requests, but we'll see.