Couldnt get my vista crap to let me alter the ini file to enable screenshots
Glad you have the problem sorted, but that issue with the ini file would make me very unhappy. It means Vista is still second-guessing you.
Ideally, Morrowind (I'd contend any program not by Micro$oft), should be installed somewhere other than 'program files'.
IIRC, Program files is not a real directory on Vista/Windows 7. It's treated in a special way by the system with added permission restraint. Only when you can edit Morrowind.ini can you be sure the installation does what you tell it to.