well I don't know if it will help but you can try modifying your saved game to bring him back that way (by unkilling him) or adding the journal entry. I also think there is a console command to add journal entries,
though I'm not really sure..anyways here is a save game editor if you feel like giving it a try: http://planetelderscrolls.gamespy.com/View.php?view=Utilities.Detail&id=21
note: I am not 100% sure how do this because I never really had the need for a save game editor in morrowind but if its anything like the other save game editors I used for other games it should be able to do the trick, you've got nothing to lose if you have a minute or two to tinker with it,
Ok I found the console commends that should fix this problem for you. Type in:
Journal, TT_PuzzleCanol, 100
if you want to make it look like you really did do the quest replace 100 with 50 giving you the middle entry then do it again and put in 100. If it doesn't work try puttin the TT_PuzzleCanol in quotes.
Hopes this help you out!