Fixed collision and animation issues with the Kagouti Creature including: hyper-movement, twitching and launching off the ground like a rocked when killed. Hopefully it will make it to the next release but until then a patch can be downloaded from here.
Special thanks to Seferoth for testing this out.
Download Patch.

I tested it and it works greatly for me. Animation is smooth, no twitching or hyper-movement and no CTD's. Great work!
What about death-physics ... previously it used to fly off when killed.
Also is there any abnormal stretching on the killed kagouti (a little stretching is unavoidable but if its big enough to look ugly then it needs to be fixed.)
And if you kill a kagouti and then leave the cell to return again ... does it stand back up?
Death physics seemed to work like its supposed. I didnt see any stretching, but i didnt check will it stand up when leaving and then returning. I will check all those immediatly.
Edit: Tested those and results are not good. When i returned to area where i had killed Kagouti my game crashes to desktop , this happens everytime i tryed to return to that area.
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I did more testing and i managed to avoid CTD. I avoided CTD by taking another road to Kagoutis body. Kagouti was dead like it was supposed to be. Im not sure did the Kagouti cause the CTD or did i just step to one of those CTD points. Still, animations work greatly, not stretching or twitching or any kind of problem related to animations or textures and that CTD might have been caused by something else.
Edit: I posted this post at the same time as above Hasmi1's post.
I did try both versions and i dont know what differences they had, but i didnt receive any CTD's with version 0.02 and the animation was somewhat smoother i could say. I even tryed to trigger CTD, but the game didnt crash. Awesome job Hashmi1, i really do believe that version 0.02 do fix all the problems related to Kagoutis. Atleast it did for me:). I will do any additional testing if its required.
Edit(Testing Results): Animation works greatly, No Kagouti twitching or stretching, havok and death physic works like it supposed to, Kagouti remains steady when dead and does not stand up when returning to its corpse, and no CTD's was triggered with 0.02 version.
Great :)
Just for your info, most 'spot' crashes can usually be fixed by using the "Purge Cell Buffer" mod.
Also there's more work to do, we can't have people manually deleting files when the next patch is released so we will instead have to create a seperate folder for the new files (I'd prefer meshes\morroblivion\creatures\wildlife\) and then make an esp that redirects the Kagouti's to use the new files - the esp can then be merged with the main project in the next release.
Can you please do that (I think ashlander already explained the process to you)?
Okay, i will do that.
Thanks :)
Here it is. Every Kagouti now redirectes to meshes\morroblivion\creatures\wildlife\Kagouti , here is the link to esp file.
Link: http://www.mediafire.com/?xzyf1fq7dyd9gah
Thanks once again :)
No problem, i am the one who should be thanking you. You just fixed one of my favourite creatures in Morrowind:). Im not that good modder myself, so im happy that i can help this project by testing various things.