If you want to make your character hit more often, make sure your chosen weapon is listed as a 'Major' skill for your class, make sure your green fatigue bar is at or near full before engaging in a battle, and also consider making 'agility' one of your two primary attributes, or else pick the birthsign that gives agility as a bonus. If you follow all of these suggestions I can guarantee you will almost never miss, even at the beginning of the game.
As for the mods, that's a much more difficult question to answer. You should experience the game mostly as it was originally made, at least for your first playthrough so you get some idea of what the game is actually like, and can intelligently respond to people here on the forums who might come later and have questions like yourself. Ultimately it does come down for what you're looking for in a mod - there are mods to add weapons, extra quests, extra guilds, extra homes, cities, or even new landmasses to explore entirely. Personally I just use graphical mods though, to preserve the Morrowind I love but make it easier on the eyes.
In my opinion, the best mod for this is the Morrowind Graphics and Sound Overhaul (MGSO) package, which is a large, all-in one mod that comes with all of the latest official and unofficial patches to get rid of bugs and correct errors, as well as boosting Morrowind's graphics to a 2008-ish level while maintaining the original art style and aesthetics.
You can read about the mod here: http://morrowindoverhaul.rpgitalia.net/
But if you want to download it, go here: http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=8987 for an easy, all-in-one download.