This is something I've been tossing around the idea of for quite a while now. It wasn't until a few days ago though, that I really made a breakthrough on how I was hoping to get the ghosts to look.

As you can see from the screenshots below, they look very Oblivion-esque. There are female ghosts, all using doll like nudity, thanks to kalikut.
http://i624.photobucket.com/albums/tt325/NazoX9/MGEScreenshot1.jpg
http://i624.photobucket.com/albums/tt325/NazoX9/MGEScreenshot2.jpg
http://i624.photobucket.com/albums/tt325/NazoX9/MGEScreenshot3.jpg
http://i624.photobucket.com/albums/tt325/NazoX9/MGEScreenshot4.jpg
http://i624.photobucket.com/albums/tt325/NazoX9/MGEScreenshot5.jpg
http://i624.photobucket.com/albums/tt325/NazoX9/MGEScreenshot6.jpg
http://i624.photobucket.com/albums/tt325/NazoX9/MGEScreenshot7.jpg
http://i624.photobucket.com/albums/tt325/NazoX9/MGEScreenshot8.jpg

Anyways, lets move on to the readme, and download links.

==============================================NazoX9's ghosts and wraithsVersion 1.0By:NazoX9==============================================INDEX:-> Requirements-> About this mod-> Installation-> Known Bugs & Issues-> Contact Info==============================================REQUIREMENTS:==============================================Requires Morrowind, Tribunal, and Bloodmoon,and better bodies.==============================================ABOUT THIS MOD:===============================================Changes ghosts a bit, and adds wraiths. Thereare now ghosts, ancient ghosts, faded wraiths,wraiths, and gloom wraiths. Ancestor ghosts,and greater ancestor ghosts remain in place,but have had their spells tweaked. Also, ifyou install the folder marked new ghost meshesit changes the appearance of the ghosts to amore oblivionesque version, which I think looksmuch better than the skulls in sheets.===============================================INSTALLATION:===============================================Extract the folder to your desktop, and chooseone folder to install.Use old ghost meshes, if you want your ghoststo keep the old look. Use new ghost meshes ifyou want the oblivion like, multiracial,ghosts.I know it says above that better bodies isrequired, but it's simply for the textures.The male ghosts will use whatever BB textureyou have. The females however, all useKalikuts doll-like-nudity textures.===============================================Credits:===============================================Thanks to Kalikut for allowing me to use heredoll like better body textures.The better body team for creating such agreat body mesh for this game.I'd also like to thank whoever put togetherthe morrowind modders resource directory,which helped me find resource heads for myghosts.Thanks to everyone that had a part in makingthe heads I used. I know that includes a lotof people, from whoever made the meshes, whoevermade the textures, etc.. I don't know all thenames, so please don't be offended thatyou're not mentioned specifically here. I canalways add you in if you would like.;)===============================================KNOWN ISSUES OR BUGS:===============================================No known issues or bugs.===============================================Contact Info:===============================================NazoX9 at beth forums.NazoX9@gmail.com

http://tesnexus.com/downloads/file.php?id=27454

Probably a stupid question, but does this change the Dwemer ghosts?

Nope, doesnt' touch the dwemer ghosts at all.

Damn. Ah, well. I'll download and let you know what I think later. <3 Looks good from the screenies.

Is there a way to get this effect on the Incarnate ghosts? :drool:

Ya know, I didn't even consider messing with the NPC ghosts. It would be rather easy to turn them into creatures, and use the same effect. It's just a recolor of the particles on the frost atronach applied to the ghost mesh.

Thank you for this! :goodjob:
Looks good.