Is mgso 3.0 the current latest graphic suite? What are some of the considered essential mods that I should download? And how should I install them?
LGNPC'S (Less Generic NPC's)
Nothing else needed in my opinion.
I agree with King. LGNPC is a great mod, it fleshes out many of the npc's in the game. Giving them detailed backgrounds and lore. Also if you're a Telvanni fanatic like me. I suggest "Rise of House Telvanni", "Uvirith's Legacy", and "LGNPC Tel Uvirith." Also if you'd like to play the main quest from the pov of the other guys, then I suggest the "Great House Dagoth" mod. It is extremely lore friendlier than the "Sixth House" mod.
The only mod I consider "essential" apart from unofficial patches and fixes like MPP and the Code Patch is Galsiah's Character Development. It fixes the kind of broken leveling system and lets you play your character more freely. Some say it encourages power-leveling too much, but I disagree.
LGNPC I can only recommend AFTER you played through the game at least once (not on the same character), but it's an amazing mod.
MGSO I can't really recommend. Even when it came out years ago it was quite outdated and buggy, not to mention that the author didn't get approval to include a lot of mods, which is why older or worse alternatives had to be chosen. Also keep in mind that the package is several years old and the author never bothered to create a single patch. Maybe it's just me, but you're a lot better off just spending an evening to mod the game yourself.
HedgeHog12 and his team made a new graphic overhaul called http://www.nexusmods.com/morrowind/mods/43790/? It's worth checking out.
MGSO is just a compilation of mods, the author didn't make any of the mods himself. As I said, he also didn't get permission for every mod and therefore some mods included are pretty meh. Take the heads for example. Westly's heads were the best at the time, but weren't allowed to be included and MacKom's heads were released after MGSO came out, therefore you are stuck with Better Heads, in my opinion the worst of the bunch. MGSO is also not a good base to add other mods, because many of the individual plugins are already merged which prevents you from removing/replacing some individual mods. Just follow a guide to install graphics replacers.
MGE XE is part of MGSO, but MGSO uses an outdated version of it.