Does anyone else have this issue? If i move the master volume slider to 0 the music is still playing at its regular volume. Adjusting the music volume slider directly changes the volume level in windows 7's "volume mixer" panel (i.e. it lowers the volume of morrowind.exe). So setting the music volume to 0 mutes all game sounds. I did a lot of googling and tried searching the forums (the search functionality seems pretty terrible) and couldnt find anything like this.

One thing to note, do not set the Music Volume in this game to 0 if you don't want to hear it. Set it at 1 or 2 (out of 100) . It can cause weirdness in the game if set at 0. This has nothing to do with your problem posted about, just don't want you to create another one.

Now, the other question to ask, do you have any mods on the game?

Actually, it might be indirectly related to the above post. On your rig, do you have MP3's associated to Windows Media Player or some other Media Playback Program? (this is what determines what program opens a file when you double click on it). If not set to WMP, then try that and see what happens. You can still use any media player you want, but MP3's need to be associated with WMP to make this game happy.

I thought mods or MCP could be the issue so i checked with a vanilla install of Morrowind and it does the same thing.

I had Foobar2000 set as the default mp3 program, switching it to WMP stops the music slider from adjusting the volume of the entire game but the master slider still has no effect on the music. This is good enough though as at least now other sounds can actually be louder than the background music.

Thanks so much for the quick and helpful responses!