I just recently purchased a Sapphire Edge Mini PC HD 3 today and it runs pretty decent.
A few computers back I dabbled in some graphic and quest mods Tamriel rebuilt, better faces script extender ect....
It's running Windows 7 64 bit OS and here is a link to the specs: http://www.sapphiretech.com/presentation/product/?cid=6&gid=1054&sgid=1150&pid=1434&lid=1

I wanted to get an opinion as to how much you guys think it could handle in terms of mods.

That is the weak link and the most limiting factor as Morrowind will most likely utilize only a single core therefore the performance could be similar to that of a 10 year old gaming pc.I have an old pc with 2.2 GHz dual core processor and struggled with demanding mods so you will probably need to avoid things like MGE , also mods which put in a lot of NPC's and animations and anything which crams in a lot of objects into a single cell. If you keep the a game fairly vanilla you should be ok to play most mods but that is something you will need to ascertain.