I love Morrowind and played it to death after it was released, now after a long wait I have decided to play it again with the new Morrowind Overhaul mod. I also wanted to enhance the game with other mods that balance the character skills, economy and enemies and add more items(weapons, armor and other miscellaneous items) in the game. I was missing out on the Morrowind mod scene for a long time so I really dont know where to start. So any help would be really appreciated.

http://www.gamesas.com/index.php?/topic/1060141-mod-recommendations-for-new-players/page__p__15392814#entry15392814 was made to help get you reacquainted, updated, and informed.
:)

Includes links to patches/tools/guides/favorite lists, etc.


For character development, you might want to try http://planetelderscrolls.gamespy.com/View.php?view=mods.detail&id=2030.
For economy balancing, you have many choices. BTB recently did a huge http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=7904 of many aspects.

I think Morrowind Overhaul is a great place to start if you want to get into the game right away.
For game balance I'd suggest BTB Game Improvements: http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=7904

I'm like you but I've spent a couple of months just downloading and trying out mods. There have been a lot of mods over the
last 8 years
If you want to take the long road like me with a possibly better experience later, then I really suggest using Wrye Mash
and figuring out the Installers feature. The basic idea is you can place downloaded mods in the C:\Morrowind\Installers directory
and Wrye Mash can safely install and uninstall the mod files, restoring overwritten extracted files as needed. (If you don't use
Wrye Mash and just extract the mods yourself the problem is it's too hard to uninstall a mod later since everything gets dumped into the same place.)

Wrye Mash can usually figure out mod archives' structure but you can also take each mod and massage it into
your own archive (e.g. 7z files) with a canonical (meaning standard) form (i.e. esp's and Meshes and Textures directories in the root of the archive file).

Thanks for the quick reply guys, its just what I wanted.

Cheers!