I recently installed the complete morrowind mod but when logs are on the ground the show up as massive yellow shapes. I think its because morrowind doesnt know what to use for logs. Also when i place the logs in my inventory they show up as smiley faces with one of those red slashes through them. Please help!

Try to install the mod again. A exclamation mark means a mesh is missing. A yellow smiley means an icon is missing.

I suggest you slow down and read some tutorials on how to install mods.
The pinned FAQ will help: http://www.gamesas.com/index.php?/topic/106063-morrowind-mods-faq/page__p__1772641&#entry1772641