The main gameplay differences, as far as I'm concerned, is that the combat is more skill based and there's no helpful quest compass. If you face an enemy and slash your sword against him, you may see the sword slash thru the enemy but still be a miss because the Long Blade skill isn't high enough. Oh, and the stealth kinda svcks
But if you can live with those differences, I think you will enjoy Morrowind too.
That said, the 360 is backwards compatible with the Xbox version of Morrowind, so you didn't really need to buy a Xbox for it. And I would still recommend the PC version over this, with longer viewing distance, much shorter loading times and so on. And since the game is now over a decade old, it runs rather well even on a "bad" computer.