With a few MGE shaders, lighting can totally redo the world.
If you were to use some simple time-of-day scripts and brights lights with small radii (the engine seems to be better able to handle those) and darker general (cell) lighting, you can totally overhaul the atmosphere (with very little work).
My computer cant run MGE, even if it could I wouldn't use it, it just doesn't look like Morrowind to me.
I also have no idea how to run a script, but its something i plan on learning soon, i'll try that, thanks.
The Lighting Mod is also very good. It has an ambient fix that reduces all the ambient light below 10 in almost every cell.
I have no idea how to install mods, but thanks for the tip. I have my own mod under way and all I need to do is some testing.