So, before I venture into morrowind, how does the level system work, is it more like skyrim, or more like oblivion?????

Raising skills specific to one's class is how levels rise in Morrowind.

Raising non class skills is useful, but no levels come from it.

http://www.uesp.net/wiki/Morrowind:Level should clear things up.

It's similar to Oblivion's system, but with a few important differences. First, Morrowind uses Major, Minor, and Miscellaneous skills, not just Major and Minor (which replaced Misc.). Majors start with a larger initial bonus than Minors, and also improve a bit more quickly. You level up by increasing your Major and Minor skills by 10 points, but all three types count toward Attribute multipliers. Personally, I hate the whole "multiplier" concept in both MW and OB, and wish it just increased Attributes on the fly, like it does in several leveling mods.

The good news is that MW's much more relaxed leveling and near-total absence of scaling means that it doesn't pay to take your most heavily used skills as Minors, which was almost a RP necessity in OB to prevent the world from out-leveling your character if you used your non-combat skills frequently. In fact, the high rate of failure at tasks due to low skill makes it almost imperative that you take your key skills as Majors. The bad news is that you can eventually out-level everything in the basic game at some point, and have to move on to the expansions to find any real challenge.

This is why i got the GotY editon. =D