Can you create this knock back effect without actually dealing dmg?
Not no dmg (or maybe yes) but with minimal damage hand to hand hit or any hit that causes fatigue damage is 100% knockdown (taking into account that it will go bellow 1 like RAKninja said, tho not everything that makes your fatigue reach 0 will knock you down tho). Knock back is only in animation and it does not interrupt anything, at least it never did for me, maybe I always just got hit right in time to recover from a stun in time to normally continue with my actions, but I'm pretty positive about this.
Also, if some animation started while player received a hit that will knock him down player will perform it to the end while falling. So if you already started swinging your sword and there is a hit landed on you that would knock you down, while you are falling swinging action still goes trough the end. I wouldn't give my head in fire that the hit in this state actually damages the PC, but I'm pretty sure it does.
As I said, I'm not 100% sure for both of my opinions, so someone who is sure might correct me. So do not use this information as valid if you need it for anything specific.
edit: however, unlike RAKninja states, I'm pretty sure that the amount of damage does not count in chance for a knock down, not sure for knock off. But my knowledge is also far from perfect so bigger possibility that RAKninja is right
edit 2: knock down and knock back are different things, so I'm referring to knock down as when the NPC/PC falls down to the ground, and knock back when PC/NPC is cast off, stunned, however you like to call it. It usually wouldn't matter, but there are both things in Morrowind so I thought to point it out, sorry if I look like a smart ass, I'm not trying to be :ninja: