DT, I think that the main barrier to mod compatibility reporting is the possibility that there might be different revisions of the Morrowind and morrowind GOTY code for the Xbox. Unlike the PC version, there's no version number that shows up during the splash screens to tell us if we're at the latest patch level or not. And while we can reliably patch the main XBE file, nobody's done a byte-by-byte comparison of the executable to see if everybody's running the same code.
In the spirit of suggesting a solution every time a person points out a problem, I think it might be helpful if we post the part number off of the Morrowind disc when we discuss whether or not a particular mod works for us. I don't have my disc in front of me, but there should be like a long numerical code along the outside or inside edge of the disc that indicates what revision of the software you happen to be running. That way we can see if there are trends or patterns to the compatibility problems.
For the record, I can run better Bodies. But I haven't loaded Better Heads because it's very grahpics intensive, and I'm barely able to run it on a comparable 700 mHz PC. I'll post my disc part number when I get home, and maybe we can put together a chart or something.
-KC