Well I really enjoyed playing Oblivion, and now I want to try Morrowind. I want to play it on my xbox 360 arcade (I have a hard drive now) but I never had xbox live and have no updates from it.

Does anyone know if I need an update to play Morrowind or not? If so, can I get it from somewhere else?

You need the update check out this on how to get one.
http://www.xbox.com/en-US/support/systemuse/xbox360/console/systemupdates.htm

Yes, you can play on the 360, but you will need an update.
Get that from XBox.com http://www.xbox.com/en-US/support/systemuse/xbox360/console/systemupdates.htm

edit: doh, ninjad

I think even with the update it will only play if you have a North American copy of the game.
I updated using the USB method and my copy still wont work... Very disappointing.