So, my main issue is following. In the Fighter's Guild quest, the one where you required to clear the Vas ruins, I've arrived there (traveling on foot all the way from Balmora) only to find Ulyne Henim, whom I'm supposed to help clearing them out, dead. Two Blighted Cliff Racers were in her vicinity, I dunno whether they were the reason.
Also, a minor issue: how were the armor protection ratings calculated during the conversion? Even Iron cuirass is better then a Bonemold or a Chitin one, making the latter two useless... Or is there something I missing?
0.58, Complete Installation. Fine job otherwise, though runs on my 8-year-old computer only with graphics at the lowest level. Strangely enough, it runs base Oblivion decently at fairly average-high settings.

Two Blighted Cliff Racers
Most likely. You can revert to previous save or go tell the quest giver that she's dead.
They were corrected by hand, I think. Iron Cuirass has AR of 10, while Chitin and Bonemold - 8 and 8.75 respectively, but they are light armor and iron is heavy, so I don't see how they're useless. Bonemold, for one, is as good as Mithril in Oblivion.
That is expected. Morroblivion has higher system requirements than just base Oblivion.