I have a netbook with 1gb ram an Intel Atom processor and the intel chipset graphics, in game i've noticed that it sometimes slows down to VERY slow fps (not sure the exact # of fps to lazy to turn on the counter) but the real question of this forums is does anyone know any mods, patches or tricks that could improve the fps if so it would be helpful to inform me of such. I also noticed it got noticeably slower when i installed bloodmoon and tribunal (could those be slowing it down) I have it on minimum settings.

(it is playable but in some areas it will slow down ALOT, the menu is also really laggy when i drag my cursor)

It could be the hardware itself, I hear that Netbooks and Morrowind don't really work well together.
Adding Tribunal/Bloodmoon should not have any bad affect.

Are you using any mods, or third-party programs? Or is this just the straight game?

Some tips:
Turn off shadows.
If you muted the music in the Options menu, make sure the Music slider is not all the way to the left. (move it the right a few notches)
Open your Morrowind.ini file and change this line: Max FPS=240 to Max FPS=60
Download and install DirectX 9c , just in case you don't have it yet. (it's free, just Google it)
Play in full-screen mode. Not windowed.
Make sure all other programs are closed.

The http://planetelderscrolls.gamespy.com/View.php?view=utilities.detail&id=22 has some tricks to help keep FPS stable. (you don't have to launch MW from it, as long as it's open behind the game it will do its thing)
Especially of note for you...
- Accelerate Mouse pointer in menus
- Hide objects that are currently small and far-away