Well, my favorite part of modding is to improve visual part, replacers, retextures, and so on, and I've got a copy of Redguard, so I wonder if it is possible to do something on this side. Have never played any non-primary titles of Elder Scrolls, so it is new to me, and thus lot of questions.

So, retextures. I found REDPIC, so, as I understand, it is theoretically possible to create texture replacer for game. Is it really possible? Is it possible to use HD textures (or at least enlarged twice or thrice)? There seems to be only 256 colors palettes, is there any more limitations? Will the engine be able to handle inproved textures? Is there any texture packs for Redguard exist?
Next, replacers. It appeared to me that engine will not be able to render meduim-poly (Morrowind or Oblivion level of detail) objects, am I right? Is there any convertors for Redguard 3d data, or, may be, another way to edit it?
Some programs, improving the visualization, adding new effects, like MGE or ENBSeries. It seems to be impossible to create such program for Redguard; engine too outdated. Is it really so?
There are number of projects for Arena, Daggerfall and Morrowind, aimong to recreate game world with new, improved engines. Is there are any such project for Redguard?

Oh, Redguard is my favorite game of the whole TES saga. I hope that someone will try to create a new engine for it. It would be wonderful to have facial animation and water, looking realistic... This great game really deserves it!