A friend of mine started playing Morrowind a few months ago and has told me that she's occasionally noticing what sounds like a sheep in the Ashlands. I asked her if it was the Silt Strider moan you hear around Balmora, but she insisted that it was a sheep. Any ideas about what this may be?

Vanilla file Data Files\Sound\Fx\REGN\howl7.wav

whatever makes that noise, it's a pretty solid sheep impression. no actual evidence as to what be baa'ing though

http://www.abload.de/image.php?img=evilsheep4yrg8.jpg

I think the sound was put there for fun. There are all kinds of inside jokes embedded in the game.