One thing that's always bothered me about Morrowind, is that it really seemed like some races really got huge advantages in the racial abilities and powers, while others really just seemed worthless. Let's look at wood elves as the best example of that. Beast tongue? Has anyone ever really used this? Now, on top of that, those racial powers really became outdated by level 5. That's where I've come in. I wanted to make every race useful in it's own way, and sort of have a standardization in place. Everyone will get something useful, and those outdated racials will now level up with you. On top of that, leveling up will also bring new powers to your race. Something that makes sense with what you're playing. I already have a lot of ideas with what I'm going to do, so I'm going to detail that a bit here, and leave blank areas for your suggestions. Let's start from the top shall we?

First I want to rebalance the racial skills. It's so crazy the way it's set up now. I want to reduce the skills a bit, and also make it so that everything is pretty well even.

For skills to start I went with a simple formula of 25 points.
One ten point skill, and three five point skills.

=Argonian=
Athletics - 10
Spear - 5
Alchemy - 5
Unarmored - 5

=Breton=
Mysticism - 10
Conjuration - 5
Restoration - 5
Alteration - 5

=Dark Elf=
Destruction - 10
Long Blade - 5
Light Armor - 5
Mysticism - 5

=High Elf=
Destruction - 10
Alteration - 5
Conjuration - 5
Enchant - 5

=Imperial=
Heavy Armor - 10
Long Blade - 5
Blunt Weapon - 5
Restoration - 5

=Khajiit=
Acrobatics - 10
Athletics - 5
Hand to Hand - 5
Sneak - 5

=Nord=
Axe - 10
Medium Armor - 5
Blunt Weapon - 5
Long Blade - 5

=Orc=
Armorer - 10
Axe - 5
Medium Armor - 5
Heavy Armor - 5

=Redguard=
Long Blade - 10
Heavy Armor - 5
Short Blade - 5
Athletics - 5

=Wood Elf=
Marksman - 10
Alchemy - 5
Light Armor - 5
Sneak - 5

I also redid the attributes on a new formula of 280 points.
It is a base of 30. Each race has one twenty point main attribute, two ten point secondary attributes, one five point six variant, and a minus five point deficit.

=Argonian=
Male Female
Str 40 40
Int 30 35
Wil 30 30
Agi 40 40
Spd 50 50
End 35 35
Per 30 30
Luc 25 25

=Breton=
Male Female
Str 35 30
Int 50 50
Wil 40 40
Agi 25 25
Spd 30 35
End 30 30
Per 40 40
Luc 30 30

=Dark Elf=
Male Female
Str 40 40
Int 40 40
Wil 30 35
Agi 30 30
Spd 50 50
End 35 30
Per 25 25
Luc 30 30

=High Elf=
Male Female
Str 35 30
Int 50 50
Wil 40 40
Agi 30 30
Spd 30 35
End 30 30
Per 25 25
Luc 40 40

=Imperial=
Male Female
Str 40 40
Int 40 40
Wil 30 30
Agi 35 30
Spd 30 35
End 25 25
Per 50 50
Luc 30 30

=Khajiit=
Male Female
Str 40 40
Int 30 35
Wil 30 30
Agi 40 40
Spd 50 50
End 35 30
Per 30 30
Luc 25 25

=Nord=
Male Female
Str 50 50
Int 25 25
Wil 30 35
Agi 40 40
Spd 35 30
End 40 40
Per 30 30
Luc 30 30

=Orc=
Male Female
Str 40 40
Int 30 35
Wil 40 40
Agi 35 30
Spd 30 30
End 50 50
Per 25 25
Luc 30 30

=Redguard=
Male Female
Str 50 50
Int 35 30
Wil 25 25
Agi 30 35
Spd 40 40
End 40 40
Per 30 30
Luc 30 30

=Wood Elf=
Male Female
Str 25 25
Int 40 40
Wil 30 35
Agi 50 50
Spd 40 40
End 30 30
Per 30 30
Luc 35 30

Then there's the powers and abilities.
The basic formula I'm looking at, is every race will start with 1 constant effect ability, and one daily power.
Every 7 levels, these abilities will be increased, if possible.
At level 10 a new daily power will be introduced.
Every 10 levels after 10 that daily power will be increased in some way.

=Argonian=
Starting:
Ability - Water Breathing (Constant)
Power - Undecided
Lvl 7
Increase in base power.
Lvl 10
Power - Natural Camouflage (Chameleon 40 points for 30 seconds)
Lvl 14
Increase in base power.
Lvl 20
Power - Natural Camouflage (Chameleon 55 points for 30 seconds)
Lvl 21
Increase in base power.
Lvl 28
Increase in base power.
Lvl 30
Power - Natural Camouflage (Chameleon 70 points for 30 seconds)
Lvl 35

Lvl 40
Power - Natural Camouflage (Chameleon 85 points for 30 seconds)
Lvl 42

Lvl 49

Lvl 50
Power - Natural Camouflage (Chameleon 100 points for 30 seconds)

=High Elf=
Starting:
Ability - High Elfborn (Increase Maximum Magicka 20%)
Power - Undecided
Lvl 7
Ability - High Elfborn (Increase Maximum Magicka 50%)
Lvl 10
Power - Undecided
Lvl 14
Ability - High Elfborn (Increase Maximum Magicka 70%)
Lvl 20
Power - Undecided
Lvl 21
Ability - High Elfborn (Increase Maximum Magicka 100%)
Lvl 28
Ability - High Elfborn (Increase Maximum Magicka 120%)
Lvl 30
Power - Undecided
lvl 35
Ability - High Elfborn (Increase Maximum Magicka 150%)
Lvl 40
Power - Undecided
Lvl 42
Ability - High Elfborn (Increase Maximum Magicka 170%)
Lvl 49
Ability - High Elfborn (Increase Maximum Magicka 200%)
Lvl 50
Power - Undecided

=Khajiit=
Starting:
Ability - Night eye (Constant 10 points)
Power - Undecided
Lvl 7
Increase in base power.
Lvl 10
Power - Undecided
Lvl 14
Increase in base power.
Lvl 20
Power - Undecided
Lvl 21
Increase in base power.
Lvl 28
Increase in base power.
Lvl 30
Power - Undecided
Lvl 35
Increase in base power.
Lvl 40
Power - Undecided
Lvl 42
Increase in base power.
Lvl 49
Increase in base power.
Lvl 50
Power - Undecided.


=Wood Elf=
Starting:
Ability - Beast Tracking (Constant Detect animal 10 ft)
Power - Beast Tongue (Unchanged Magnitude 5 600 duration)
Lvl 7
Ability - Beast Tracking (Constant Detect animal 12 ft)
Power - Beast Tongue (Magnitude 8 600 duration)
Lvl 10
Power - Call Nature (Summon Wolf for 30 seconds)
Lvl 14
Ability - Beast Tracking (Constant Detect animal 18 ft)
Power - Beast Tongue (Magnitude 13 600 duration)
Lvl 20
Power - Call Nature (Summon Bear for 30 seconds)
Lvl 21
Ability - Beast Tracking (Constant Detect animal 22 ft)
Power - Beast Tongue (Magnitude 18 600 duration)
Lvl 28
Ability - Beast Tracking (Constant Detect animal 25 ft)
Power - Beast Tongue (Magnitude 23 600 duration)
Lvl 30
Power - Undecided
Lvl 35
Ability - Beast Tracking (Constant Detect animal 28 ft)
Power - Beast Tongue (Magnitude 28 600 duration)
Lvl 40
Power - Undecided
Lvl 42
Ability - Beast Tracking (Constant Detect animal 32 ft)
Power - Beast Tongue (Magnitude 28 600 duration)
Lvl 49
Ability - Beast Tracking (Constant Detect animal 35 ft)
Power - Beast Tongue (Magnitude 30 600 duration)
Lvl 50
Power - Undecided

I have most of the scripting for this worked out, it's just a matter of getting all the powers done. I'll keep this updated as I go.

I remember one problem with giving Argonians constant water breathing is that it breaks one of the main quests. Otherwise, I love the idea.

RIght, I know which one you're talking about. That can easily be fixed though.

I really dig the idea of the level-based powers. Maybe have a look at Alaisiagae's http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=7154 for ideas? That's got some cool stuff in.

[Edit: Where'd the extra question mark come from??]