I am just restarting Morrowind, after many years collecting dust, and I would like to know what is the best mod to use to upgrade the graphics/look of the game.

That being said, my computer is older and cannot stand too extreme a graphics update...I know that will just drop my fps down to nothing. So, I guess I am looking for a middle of the road update, even if it has to come in multiple installs, i.e. one for the weather, one for the water, one for the sky, one for the trees/grasses, etc...if there is a middle of the road mod that will do all of this in one install, that is great also. But I am just looking to upgrade the look of the game, without having to spend a fortune for a new computer to be able to run it. I have a good video card...512mb, but my processor is slow. I have plenty of HD space, but only 2gb of ram. Please let me know if anything is out there that I can use.

Thank you...

Knot's guide http://knotstheinane.blogspot.com/p/morrowind-modding-guide.html is a good place to start. If you set the view distance for distant land (if you want to use it) in MGE down to about five or ten and don't go too heavy on grass being generated you should still run at a nice rate.

It'll take experimenting more than anything to find the right combination.

Vurt has some less demanding versions of his trees available also which ought to save you some fps.

You may want to skip mods that add large amounts of extra statics to maps though. I've had a pretty hit and miss time with these. Trancemasters are worth a try as the performance is pretty good with them compared to others that I've tried in the past.

Good luck!

You can pretty much use any Textures that you want, same with meshes.
Grass is likely out of the question, since it kills FPS.
You might be able to update Trees with new meshes, but they can put a strain on FPS too.

http://www.gamesas.com/index.php?/topic/1155980-povuholos-tomorrowind-a-mod-recommendations-list-for-today/page__p__16924204#entry16924204 has a big section on Texture replacers.
As does the http://www.gamesas.com/index.php?/topic/1103737-add-to-the-list-of-needed-graphics-mods/page__p__16150079__fromsearch__1&#entry16150079

Worth mentioning is also the http://planetelderscrolls.gamespy.com/View.php?view=Mods.Detail&id=8987 package, but it will likely be too demanding for your PC.