Does any body know where I can find empty Grand Soul Gems for sale or out in the open?

I am playing Morrowind (non GOTY) on the Xbox.

The UESP has a section on this. http://www.uesp.net/wiki/Morrowind:Grand_Soul_Gem#Grand_Soul_Gem

(and I'll get this moved to the Cheats, Hints section)

Oh Sorry forgot about that section LOL!

they start to appear in containers at around level 10. The Smugglers hideout of Mannammu is just southeast of Pelagiad on the shore of the Lake Amaya, has several when done around level 10.

Or you can try Azura's quest:
http://www.uesp.net/wiki/Morrowind:Azura%27s_Quest
which makes them less necessary.

Easiest way to get a couple is:

Go to Vivec, Redoran canton. There's a merchant in the waistworks level with one for sale, just ask around the Vivec FQ and Redoran canton and you'll hear rumors about "he's losing a lot of business". If you leave the area and come back another day, the soulgem should restock.

Go from there to the Telvanni canton, and listen around for a rumor about a Rat infestation. Do a little quest for the merchant mentioned, and you get rewarded with a second GSG.

If you need more, there's a merchant in Mournhold who sells them.

Alright thank you all! This should stock me up!

I am level ten now in fact!!

Actually it's level 11 that Grand Soul Gems start showing up much more often as random loot.
(The quality of random loot tops out at lvl 11. The other thing I've noticed that starts showing up at that point are lock-splitter scrolls).