can you make your own armor/weapons on morrowind

In a limited way, yes, you can get other NPCs to craft armour/weapons for you.
If you collect enough raw material of certain types, you can have armour and weapons made from these materials.
http://www.uesp.net/wiki/Bloodmoon:Brynjolfr will make Bear and Wolf armour for you.
http://www.uesp.net/wiki/Bloodmoon:Aenar (or http://www.uesp.net/wiki/Bloodmoon:Carnius_Magius) can make Ice Armor and Stalhrim Weapons.
http://www.uesp.net/wiki/Tribunal:Bols_Indalen can make Glass, Ebony and Adamantium armor for you.

But for a real crafting experience, you'll need to use mods. Specifically, http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=4077 which allows you to actually create new items yourself.