Leonardo's link should help you with most of the technical stuff.
For your first playthrough I'd suggest not to install too many mods to be able to experience the "vanilla flavor" of unmodded Morrowind. In my personal opinion it's worth it.
I'm dying for a house of my own in Morrowind and somehow killing people for them just isn't the same. (LOL)
There is a place that a lot of people don't know about, a modest but cozy little habitable abode in Vivec St. Delyn canton Waist North-Two. Watch out for your neighbors if you decide to move in though.
You may also find http://www.uesp.net/wiki/Morrowind:Abandoned_Houses helpful.