Out of curiosity, I'll ask the modding experts what is with this. I have Distant Lands enabled, and have noticed that when I turn Morrowind's in-game draw distance (from the in-game options menu) down all the way, the distant textures distort, ALOT. It looks as if the edge of the rendering distance (about a couple of feet away from the player, where Morrowind's fog would normally be at) is avalanching and turning into a giant sink hole.

Is there a way to keep the distant textures normal while putting the in-game draw distance all the way down? I found this was a way to increase FPS, but the sink hole affect is really distracting.

Here's screen shots:

Draw distance lowered (sink hole effect): http://oi62.tinypic.com/2drc5jk.jpg

Draw distance max (normal): http://oi61.tinypic.com/2chsz2x.jpg

MGE is engineered to start drawing after max Morrowind engine draw distance.

Try reducing the number of objects drawn by Morrowind engine using http://www.uesp.net/wiki/Tes3Mod:FPS_Optimizer