I'm playing a similar character right now. He's a rogue-ish Dunmer who wears light armor, sweet talks whoever he can, and uses a Steel Tanto/Dwarven Crossbow when he can't. It's pretty fun being a Thief-Adventurer out for profit. I get sidetracked alot too.
I was walking to Hla Ood from Balmora when I spotted an Ancestral Tomb yesterday, and since it was raining out pretty hard I decided to take shelter and see what I could find in the crypt. Luckily I always carry 40 silver bolts with me, reasoning that this would be enough ammunition to deal with any paranormal foes I might encounter in a single excursion (as my Steel Tanto can't hurt ghosts, it's unenchanted). Anyways, inside this random ancestral tomb I found a nest of vampires that moved super fast, and the only weapon that I really had that was effective against them were my trusty silver bolts. Even with sneak attacks, bad pedaling, and dodging it was an incredibly challenging fight for my level 10-ish character.
As I was killing the very last vampire I heard my crossbow go 'click', because I'd run out of projectiles. So I rushed forward with my Steel Tanto, stabbing wildly, as quick as I could, determined to finish off the vampire before she could use her drain spell on me - she collapsed just before it went off.
It was quite the adrenaline producing encounter, I must say. And it was 10x more interesting than what I was actually out there to do (collect a debt for a Hlaalu nobleman) which just proves that it really pays to explore in Morrowind. The loot wasn't that great to be honest, but the vampire dust more than paid for the -40- silverbolts that I'd had to frantically fire, Van Hellsing style. Of course, now I carry 70...