
Morrowind is installed to "C:/MW/" and skyrim is in "C:/program files/steamd/steamapps/common/skyrim/" (steamd is not a typo).
It would be nice to receive some actual help rather than having LASentry come in here and tell me it works fine for him, like what's happened in every other thread about the issue.

Didn't I say to go and try the alternate installer?
Where is the alternate installer?
Thanks
Use the search bar.
Edit: Never mind, I had placed the data files into the Skyrim data folder, instead of putting the folder itself into Skyrim data. The install process is working fine now. Thank you for replying.
I have a similar problem, in which after clicking install, the next button is greyed out, however, the alternate installer does not seem to recognize Morrowind being installed via Steam, and is showing an error message saying it cannot find it.
Try copying the Morrowind.exe and Skyrim.exe files to the desktop and change the location that the installer is pointing to to the desktop. (You may have to copy the launcher exe files as well, I don't know.