More information is needed here (lots more). Can you give us:
- video card brand (Nvidia or ATI/AMD), model, and current driver number
- have you updated or changed your drivers recently? Overclocked the card?
- are you running MGE? If so, are you using it to enable anti-aliasing? (This has caused my display driver to hardlock and crash in the past, is why I ask.)
- load order?
What's happening here is that something has caused your video card's display driver to lock up and crash, and in my experience it's unusual for your standard Morrowind mod to cause that. If you're using MGE, it's possible you changed a setting there recently that is upsetting the display driver.
Another possibility is that your drivers have gone sour and are in need of a reinstall/update, or that your video card is on its way out. Is this happening with just MW, or are you noticing problems with any other games you run as well? (I had a video card that showed up basically dead on arrival. It would work for standard things like web browsing, but when I tried to launch a game it would lock up and spit a "display driver has stopped responding..." error at me. And trying to update the drivers just led to an infinite BSOD loop. That was fun.)