Are water shader and sun glare included in latest MGE XE? Or I can combine with some separate mods that do this? Thanks!
Grab http://www.nexusmods.com/morrowind/mods/41102/? (preferably with more recent http://www.nexusmods.com/morrowind/mods/26348/? for it). MGSO actually includes some older version of MGE.
MGE XE not only adds reflective water and sunrays shader, but also allows to set higher resolutions, apply AA and AF, generate Distant Land, apply other shaders like SSAO or HDR and more. Everything is customizable. It even has built-in MWSE.
I recall Phal's shader being made for older MGE versions (the ones before Hrnchamd forked the project and added XE to the name).
That MCP Skunk Works contains beta-patches for both MGE XE and MCP. Most obvious changes in betas compared to stable releases were made for MCP (new functions), here's the http://www.gamesas.com/topic/1513140-repairing-the-cogs-of-morrowind-32-mcp/ and here's the http://www.gamesas.com/topic/1501085-repairing-the-cogs-of-morrowind-31-mcp/page-7#entry23875332 post.