The Skywind project , which plans to port Morrowind into the Skyrim engine, is still some way off. But perhaps you have the terrible urge to play a glorious, updated Morrowind right now. There are two options. You can go to your nearest park, carve out a hole, stuff some hay in and then hibernate until Skywind is out (not recommended) OR you can install the latest version of the splendid Morrowind Overhaul mod (recommended!). It's just been updated to version 3.0, which means its slimmer, less buggy and easier to install than ever.
The Morrowind Overhaul is devoted to making Morrowind look and sound beautiful. The torrent link from the Ornitocopter front page is the easiest way to get hold of the mod at the moment, though there is a direct download option if you're lucky enough to catch their server during a lull.
You'll need a fresh install of Morrowind to get this working. Here's a helpful video tutorial if the automatic installer doesn't work. You can feast your eyes on the mod's overhauled Morrowind environments in this trailer. The update was spotted by Redditor, FruitLoops .