Morrowind needs a VERY fast graphic card, to be able to play smoothly!
I'd love to recommend "Morrowind fps optimizer" wonderful little tool!:
www.morrowind.nm.ru
REMEMBER: If you choose an ATI card (radeon8500 and higher) you will have
option to enable "TruForm" for Morrowind!! This DRAMATICALLY improves
lightning model indoor and object geometry. So faces, rocks, pottery, clifs
and the whole scenery looks MUCH smoother and lovely! See above link for
pics of Truform in action.
Nvidia based cards don't have TruForm!
Cheapest option is a Geforce3-ti500 (and only ti-500, no less!). IF you find
one CHEAP and used.
Gf4 ti-4200 or Radeon 8500/9000pro, 64mb or 128mb, don't matter much for
that game.
If you don't fancy used cards, then you can buy a Radeon 9600, 128mb, or a
Fx5500 128mb which cost some less and is bit slower.
STAY AWAY from Fx5200/5600XT/ Radeon9200SE/9200/9600SE cards. Fx5200ultra
and Radeon 9200pro are decent, but at that price, radeon9600 is much much
better choise.