I had a friend tell me that there is some really cool player housing in Morrowind and some awesome features that go along with it. Is this true? That would be awesome cause im really into that kind of thing.

Yes, if you join and advance through one of the three Great Houses, you will get a large player house with staff.

edit: If you play on PC, you can also get mods which add all sizes and types of player houses.

Houses, yes as fragonard mentions, but there are also a host of interesting places to 'hang your hat' that includes caves, ruins, ships...etc.
They include varying amounts of safe storage including crates, baskets, barrels, and you can brighten places up with candles, lanterns, etc.
There are also houses in towns where you can make the inhabitants 'disappear' and move in at your 'convenience'.
Imagination is the key...I haven't 'earned' a typical player house in years.

I use a mod called "The Appartment". It's a very small place build just up Cassius Cosades' house, upstairs, cosy for a beginning.

http://www.fliggerty.com/phpBB3/viewtopic.php?f=90&t=4165

Good point. The thing that the the OP should be aware of is that, unlike in Oblivion and Skyrim, containers don't respawn. You can also leave your stuff on the ground or on tables, etc and they'll be there forever.