The potion bottles in Morrowind are absurdly huge. This mesh replacer contains two sets of meshes that skrink the potion bottles to either 20% or 40% of their original size, and are shifted from the original centers so they still sit properly when dropped. Just copy the appropriate meshes into the meshes/m folder.
No new textures are required.
Currently on http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=392017&id=7343 and on my http://www.gizmology.net/tes3/.