The long awaited mod is still in development, recreating Morrowind with the improved Skyrim engine.  The alpha is currently available to those who own a copy of both games, Skyrim for the engine and Morrowind for the actual game content.  There is a lot of work to be done uniting the games, skill trees are different as well as the differences in the armour system.  With a complete redo of every texture as well as the incorporation of all of Morrowind's content this is a major project but it seems Rock, Paper, SHOTGUN has good reason to believe this mod will continue being developed as there is quite a bit of action on their forums as well as the preview video they just posted.

"I'm so used to these modern conversions of old games stalling mid-development, that I immediately approach them with skepticism. There’s now enough here that I’m starting to open up my hope glands and spurt optimism juice all over my clothes. It’s kind of a problem."

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