So I'm totally new to MW on the PC and I stopped playing it just cause I couldn't get the mods to work. So I reinstalled the game and decided to give modding another try. Note: I got MW off of Steam. I started with the simple Better Bodies mod which basically installs itself. So I went through the setup wizard and stuff and after it said it was done I went to the MW start up menu and checked the Data Files and see if it worked....it didn't. I started up the actual game and nothing still blocky people. Help please!

The problem with the Steam version is that the date stamp on the game data files (Morrowind.esm and Morrowind.bsa) has changed, and the game automatically loads 'newer' files in preference to older ones. Try using http://www.nirsoft.net/utils/filedatech.html to redate those files to something like 1/1/2002.

Actually, only the bsa files need to be redated (Morrowind.bsa, Tribunal.bsa, Bloodmoon.bsa).

The default setting in Morrowind.ini is to use game assets from the newest archive first which is determined by datestamp for bsa files (every file in the archive will inherit the datestamp from the bsa). As Helena mentioned, any game assets for mods written before you downloaded your Steam version of MW will be considered older than the stock assets located in the bsas. The Steam MW files gets a timestamp for the date you download.