Helle Stealhead,
a must have mod is the Morrowind Code Patch (MCP). It is not a mod per se, it's smiliar what H.sie did for SHIII.
As my english is not so good, please look at the Bethesda forum for the topic "Repairing the Cogs of Morrowind" for further details.
The difference between MGE and MGE XE ist, that MGE XE will be further developed. A few weeks ago, there was a new version uploaded. I think it was 0.99 or so. For further details look also in Bethesda forum for the topic "Shelter from Magnus' Blaze". There are also download links available.
Edit: Typos corrected.
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Greetings
Lucky
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Angriff, ran, versenken
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