Ok here is the procedure for doing this
First open up the Data Files folder in your Morrowind Game.
You can either do this from your computer or on your X-Box. But either way you will need to open up the Data Files folder in the Morrowind Game..Once that's done you can proceed to the step 1
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STEP 1.
In the Data Files section of the Morrowind game you have the following folders:
fonts
Music
Splash
Video
Morrowind.bsa
Morrowind.esm
Morrowind.esm.map
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Now what you will want to do is create these folders and add them to the list above:
BookArt
Icons
Meshes
Sound
Textures
So now when you go into the Data Files folder in the Morrowind Directory you should have one big list that looks like this:
BookArt
fonts
Icons
Meshes
Music
Sound
Splash
Textures
Video
Morrowind.bsa
Morrowind.esm
Morrowind.esm.map
Once all that is done you can proceed to step 2.
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STEP 2.
Ok now here comes the pain in the ass part.
Since some of the mods come with all the files in one big clump, you will need to sort out what's what. The read me should tell you how ever sometimes it doesn't
But either way you will need to create the folders to place all the loose files into in order to sort them out (this is not neccessary, but it's a lot more organized and easier to keep track of everything).
So the next question is how do I know what's what?
That's a lot easier than it looks.
Follow this and you really can't go wrong.
Every mod I encountered is set up so that
all the .nif and or .tga files go into the Meshes Folder
all the .bmp and or .dds files go into the Textures Folder
all the .tga files go into the Icons folder
and the .esp file goes into the main directory (The place that has these in it):
Morrowind.bsa
Morrowind.esm
Morrowind.esm.map
Yes the TGA amd nif files can go into the same folder samething with the .bmp and .dds files. That's why you have to follow what's in the readme. The readme should tell you where to place the stuff and if it doesn't the person who did that ought to be shot.
Now on occasion you will need to create a lettered folder and place that into the proper folder. So using the Adventures tool kit as an example:
The icons folder has 2 folders within it:
Folder 1 is labeled c with 1 .tga file in it.
Folder 2 is labeled m with 1 .tga file in it
The Meshes folder has 1 folder within it:
Folder 1 is labeled c and has 1 nif file in it
The Textures folder has only 8 .tga files in it
Note: I don't think that case sensitve things matter in this but keep it the same way just to be on the safe side. For example if it's a small c then don't change it to a capital C)
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So for example you wanted to use the Adventures tool kit mod which consits of:
Icons
Meshes
Textures
.esp file
You would wind up with this:
BookArt
fonts
Icons <----The folders Labled c and m with the .tga files get placed in this folder
Meshes <----The folder labeled c with the .nif file gets placed in this folder
Music
Sound
Splash
Textures <----All the loose .tga files get placed in this folder
Video
Adventures Tool Kit.esp
Morrowind.bsa
Morrowind.esm
Morrowind.esm.map
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All you need to remember when placing whatever the mod uses (Icons, Meshes, Textures, Sound, Music) Place everything according to what's in the readme in it's perspective places and you shouldn't have a problem.
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Well I just gave you a quick Basic outline of what to do. If you need a more detailed explination, then PM me with the exact place your at and what exactly it is that you havein trouble with, and I'll help you out from there.
I just hope this clears most of the questions people have on this.
In the pc version of Morrowind I know all you had to do was create a folder called Override and it would load the mods. In KotoR 2 the same thing was true. Now in th GOTY edition of Morrowind can you make this folder. If you cant then I doubt the house mods will work has anyone tried this?