I recently downloaded Morrowind from steam and everything seemed to be working fine. I then tried to set up the graphics extender (version 3.8) and when I try to generate distant land I get the message "A fatal error occurred loading land data...failed to load default ground texture (no entry matching specified file name was found)". It's correct--the defualt ground texture isn't in my Morrowind folder; nor are any other textures or meshes, or the folders they should be in. The game itself runs fine, so I presume the textures must be on my PC somewhere, but I can't seem to locate them. Does anyone know what Steam's done with them?
Edit: Oh, and the error isn't due to the BSA files; I've eddited them so that they show as last modified in 2002/03, which I'm told I need to do in order to work MGE.