Hallo,
after having installed the mod according to your install guide everything worked perfectly - except that I encountered horrible graphical problems with the water.
It basically looks just like in this video:
http://www.youtube.com/watch?v=ihRmBJTvX5A
I have tried various attempts to stop the water from flickering, but none of them have worked yet.
My system: click here (opens in new window).
A screenshot of files installed: click here. You can see that I have tried to switch off MorrowindWater.esp without any effect.
Hopefully this can be solved, I'd love to play Morroblivion as I am a huge fan of Morrowind.
Description of the video says
Description of the video says to disable Catalyst AI. Have you tried that?