Not Found for Parameter Worldspace

I am not as computer literate as you folk, not by a long shot but I feel like I followed the steps correctly. Skywind.esm pops up in my Data Files as checked and my only concern is that I have Skyrim and Morrowind installed to different folders. I tried to merge them and no success. I dragged and dropped the Morrowind.esm in the Skyrim Data folder, then Skyrim wouldn't launch.

So far I've deleted Morrowind and re-installed it to a different directory. How am I supposed to merge the two? Does Morrowind.esm and the expansion esm's need to be ticked with via the Skyrim launcher? I am completely lost my friends! However I don't want to give up!!