The problem I'm referring to is, I noticed as I was going through a dark dungeon with a torch the other night, that lighting in Morrowind seems to be semi-static, based upon 8'x8'x8' "Cubes". The game world seems to be divided up into such cubes. As you move near enough to a cube, the entire cube suddenly lights up. Move away, and the entire cube gets darker. Move around and the bright spots/shadows inside the cube don't move - it seems like the lighting in each cube is sort of pre-calculated to 3 or 4 levels of lighting, and the lighting effect just tries to determine what level of lighting to apply to each cube.
It's really ugly. I've got a modern video card that I *know* can do much better lighting effects. Any way to achieve that in Morrowind?