I agree on vanilla gameplay for a first playthrough but I would still recommend some graphical improvement mods. There is no reason to suffer vanilla graphics except for necessity (x-box). Better heads, better bodies, unofficial patch, and the Code Patch as a minimum.
I agree. No reason not to start with some basic improvements that don't alter the quests or structure of the game, but do fix things.
The best and easiest way to do this, imo, is with the http://morrowindoverhaul.rpgitalia.net/news/mirrors-mirrors-mirrors. It combines all the patches and graphical improvements you need into one package. The site links to a youtube guide on installing it. Do note that you want to avoid the default install path in your "program files" folder, as the security on your computer may cause trouble with the install; something like C:/TesIII. (I know some will say they had no trouble, but why take that chance when it's just as easy to make a new install path at the beginning?)
See my profile for some of my favorite MW mods. Good luck!