Is it possible too make an animated texture that reflects the room your in, and basically displays the movement that's going on in the room at all times including the player?

You mean a mirror? Not with vanilla Morrowind, I don't think. MGE might pull off a reflection of the room itself as it's already capable of reflecting the landscape and statics on water planes. No idea if it could also render moving objects. If it uses its cache of distant statics for the reflections then likely no.

Hmm. I see. So objects could reflect, even if they are moving as long as it has distant statics. When there is an animated tree and what not it reflects on the water in MGE. So, It I believe technically does reflect moving objects.

However, the good question is, how then, could you get it to reflect the player and other NPCs.

[It would function like a mirror, yes. The only difference is, the idea was it would reflect everything that was behind you as if it were facing behind you rather then in front of you. See, I am curious if it is possible basically to make an intricate, infinite-like dimensional-home, where the windows or doorways reflect the very room you are in, which allowing you to see yourself, no matter the direction you face.]

You could try asking Hrnchamd in the MGEXE thread. He's always been very helpful.

Alright I'll give it a shot, thanks.

This thread is Alluding me, I can't find it. . .

http://www.gamesas.com/topic/1340389-shelter-from-magnus-blaze-9/