Morroblivion

Okay so I just set up morroblivion and the convertor gave me no problems. When I started Oblivion however the mod did not work. I could not go to Morrowind, the console simply said that the cells did not exist! I did some research and fixed the problem by installing the latest patch for Oblivion. Now I managed to get to Seyda Neen but am having another weird problem. The texture on distant land is fine but that on 'near land' (:p) is black with white squares, also the city seems to be missing some buildings and nearly all NPCs (in fact I only found a guard and no one else). Oh and I only have the Vanilla versions of both Morrowind and Oblivion, is that a problem?