Ok so im trying to make a crate that sells stuff any ideas how to do it?

Well, since you can only have Dialog with NPCs and Creatures, your best bet would probably be to use a ForceGreeting on Activate for an NPC or Creature that is hidden from view. (like under the floor or something)
This will make it appear like you're talking with the chest when you click on it, when you're actually talking to someone else who is nearby but unseen.

This would look much better than simulating trading items/gold through scripted MessageBoxes.

that may work but i am curious as how you would have a conversation after the first encounter. My first thought was to make a creature that looks like a crate (kind of like the creeper) but for it to be a NPC it needs to be animated...

How about a chest http://www.youtube.com/watch?v=ThIVcideM60?
If you don;t like the legs, you could remove them with a 3d rendering program.
Arcimaestro Anteres has recently released the resource for anyone to use. http://www.gamesas.com/index.php?/topic/1085449-req-rincewinds-luggage/page__view__findpost__p__16253683 for download.

Also note that the Creeper is not an NPC, he's a Creature. But like I mentioned, you can make dialog for creatures the same way as for NPCs.

yes that may work thanks ill post it on here if i have any more dificultys

ok so that chest doesnt work because it has no animation group

It works perfect for me, and other people have used it already, too.
Be sure you placed all three files in the Meshes folder, that's all you need to do.

You are making a Creature right? This cannot be used as an NPC for many reasons.

yes i am making a creature... but what do you mean make sure all 3 mesh files are in the mesh folder... for me they are but i can only select one of the 3 to use as a mesh for the creature

I mean place the three files in the Mesh folder. (in case you thought some were textures or something)
Yes, you select the one NIF for the mesh, the other two are the animation.

i can select 2 out of the 3 files to put in the spot where it says "add animation file" if i select either of them and put the creature in a cell it gives me a error "creature "Crate_Creature" has no amimation groups. Morrowind will crash! Continue running execuable?" Also considering that there is only one spot to put a file in the box (the add animation slot) i dont know how to set one file as a mesh and another as a amination for one creature...

The correct file to use is the "The Luggage.nif" (that's the main mesh)
As long as the other two animation files (xThe Luggage.nif and xThe Luggage.kf ) are in the same folder as the main mesh, the animations should do their job.

That does not work. when i load morrowind and try it as soon as a enter the cell it tells me that "the actor has no animation group"

Weird. It works perfect for me. And Stuporstar has released a mod with it.
Maybe ask Arcimaestro Antares for help. He made this resource.

agreed it may be because i dont have the expansions installed but i dont know thanks for the help