Hey guys! I got Morrowind recently, and I love it! I want to spice up my gameplay a bit. Perferably making the atmosphere alot darker and depressing. Does anyone know a mod out there that makes the world of Morrowind a bit more, depressing, dark, and unforgiving? Thanks.

you want to make it MORE dark and depressing? jeez. idk, have you been a vampire yet. having people hate you even more pretty much does the job for you. yah be a vampire. that will help

http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=422 would seem the obvious answer although there are certainly others that would help as well

Hmmm, If you want to make Morrowind even more unforgiving you might try adding some mods that increase the game difficulty.

Vanilla Morrowind is pretty fun but I think that Bethseda must have thought that if they made it too difficult that would be a turn off. There is so much to do in MW ,that's not an issue. Unfortunately, as a result of their decision, even with the game setting on difficult, it is very easy to have $300,000 in gold, piles of rare and priceless armor and have nothing to spend it on by level 5 or 10, I know I've done it.

You might want to to think about adding;

Morrowind Advanced v1.81 by Wrymgod - it's for players who want more of a challenge, it adds many new creatures, new dungeons, tones down some loot lists.
Creature Pack v1.1 adds many new creatures. It increases difficulty and forces the player to search for weaknesses in their opponents.

Some game balancing mods to make the gameplay more difficult;
Galasiah's Character Development v. 107c and set it on difficult. This mode redefines the leveling system in MW. It also attempts to make the character that you choose more diverse with real strengths and weakness. As it stands, MW starts out with different characters, but due to the leveling system, everyone becomes similar as you advance.
Wakim's Game Improvements - different than GCD but also rebalances the game. I think that you can use them together. You might want to read Gluby's comprehensive guides to MW for more info.

I think there is a mod out there that takes most of ridiculous piles of cash out of the game
Also one that rebalances and lowers how many rare items you find in your loot.

These should make your game more unforgiving. And if you don't like one, just turn it off.

You can used the 'Game Play Factions' mod in the Wakim's pac; it tightens the requirements for joining houses, like Fighters need Stre 40, End 35 and Telvanni need Wil 35 and Int 40. Plus shops in areas controlled by one House often don't sell to members of other houses ... my troop fought to Ghost Gate to buy glass armour, Ghost Gate is Redoran territory and the trooper wasn't Redoran --- no glass armor.

I use most the 'Taddus Balanced mods' there's even one to make money weight.

Another suggestion I heard was to increase difficulty as you progress in the game, maybe max it out during the last third?

You may want to have a look at suggestions for difficulty enhancements from my mod listing shown http://www.gamesas.com/bgsforums/index.php?showtopic=1078554&st=38&start=38#
Set at 66% difficulty I guarantee you'll reload your save at least once every playing session.
If adding any of those "critter" mods be sure to rebuild your leveled lists.