Morrowind works well on my Windows 7 PC, you could try reinstalling, make sure you've got all the patches installed, the install order is Morrowind > Tribunal > Tribunal Patch > Bloodmoon > Bloodmoon Patch.
Beyond that, check your drivers, run Windows Update, install latest DirectX etc.
Discovered that the driver for the graphics card was missing and installed it. Also ran Windows Update. The game's working great now. Thanks for all the help.
Discovered that the driver for the graphics card was missing and installed it. Also ran Windows Update. The game's working great now. Thanks for all the help.