Sadly this board seems to be almost dead, so I'll try to answer your questions, though I'm not at all an expert.
On my (modded) XBox I used DVD2XBox to install Morrowind GOTY to my hard drive (F:), and then the game ran from hard drive with no problems (I use Evo-X as my dashboard, and I started the game from Evo-X's menu).
Then just download and install the mods (install them the way it says in the mod's instructions) and see if it works. Some mods work, others won't (due to the XBox's low memory limit), and some mods will work fine on their own, but clash with other mods if installed.
The only mod I installed myself is Weather Stones (
http://planetelderscrolls.gamespy.com/View...ail&id=3177 ) as I like rain. This mod works fine, so try that one first, and test it (read the instruction file), and if it works (when you have the stones you can turn the weather stormy or dry etc) then you know you have the hang of it. Look through these forums for a list of mods that work with Morrowind GOTY on the XBox.
I also downloaded and installed a mod pack, called the Mini Morrowind Mod, which is basically a *lot* of Morrowind mods that work fine together on an XBox. The mod pack sadly does NOT work with the Weather Stones mod, so when you've got Morrowind working with Weather Stones, so that you know you know how to install mods correctly to the game, you'll either have to remove the Weatherstones file or delete and reinstall Morrowind on your XBox hard drive alltogether (the former should work, if not, the latter will work).
The Mini Morrowind Mod is available from:
http://talkwarez.com/console-games/downloa...box-games-3046/(if the link doesn't work, then google for the mod, I've tried to check the above link, but Rapidshare appears to be playing up at the moment).
Ah, the above link has downloads for the modified Morrowind .XBE files, I forgot, to run the Morrowind mods you have to edit the .xbe file (or download it from the above site, PAL version if you're in Great Britain, NTSC if you're in the USA). The editing details are on this forum.
Best of luck, mate, and please post any problems here.
This post has been edited by Clockface: Feb 17 2009, 01:45 PM