Well first, you should read this: http://www.uesp.net/wiki/Morrowind:Morrowind_for_Oblivion_Players
Additionally, Mage characters tend to be one of the hardest to play, even for seasoned veterans of the game. It's not impossible, but it may take you longer to get your feet under you.
As for not hitting things, it gets better. A good rule of thumb is to use a weapon that you have at least a 35 in, but preferably a 40+. I don't believe Bretons get bonuses to any weapon category...so that may be hard for your character.
If you have a specific question ask, and I'll be able to help you better. I could go on for pages and pages if you just want general tips