You probably won't be able to use MGE for anything fancy, but otherwise you should be ok. Integrated graphic cards really aren't very good most of the time for games like Morrowind.
I suggest using the http://planetelderscrolls.gamespy.com/View.php?view=utilities.detail&id=22 to help you keep your FPS stable.
And http://www.gamesas.com/index.php?/topic/1060141-mod-recommendations-for-new-players/page__p__15392814__fromsearch__1entry15392814 also has lots of info if you're new to Morrowind on the PC.