More event ideas, I'll try laying them out better too.
Event #1 - Guar Traders - The player meets a trader with a named guar called Sali.
NPCs - Traveling merchant with a guar carrying bags and equipment.
Actions - The guar and trader walk along the road to a major town. Conversation is not forced and is player initiated.
Dialogue: Would need standard "What are you selling" dialogue, with some other options:

Player: Why are you out here?

Trader: We're out here trading with locals and passers-by. They buy our goods, sometimes we buy theirs. "Why don't you set up a shop?"  I hear you say. Well, one reason; Sali, my Guar. The old girl needs the fresh air and exercise. It's tiring most days, and sometimes dangerous, but she loves the fresh air and I don't want her last few years to be just locked up in some cage or out back of a store.
(This unlocks the next two options)
Player:  Guars seem interesting, tell me more.
Trader: Well, I'm no hunter or wildsman, but I know some stuff about them. Guars are native to Morrowind, they ain't found anywhere else on Tamriel. They're usually harmless but if threatened they can put up a good fight - I've seen Sali here take down more than a few nix-hounds! They're fast moving when they need to be, and stronger than you'd think. Many traders use them as transport for their goods and some people even ride them.

Player: What's Sali's story?
Trader: Well, she's been my companion for I don't know how many years. Got her when she was only a few months old, when I first started out as a trader. She walks with me, carries some of the goods that I can't.  We've had many adventures, she's been through a few fights too, but Sali's always come out on top. She's getting old now, but she's still strong and fast enough to look after herself. I wouldn't trade my time with her for the world; she's the best family I've ever had.

Event #2 - Poorly Equipped Alchemist - An alchemist needs a little help to finish their potion.
NPCs - One alchemist in the wilds
Actions - Mixing a potion (trying to)
Dialogue - Alchemist walks up to player, starts dialogue.
Alchemist: Excuse me? I hate to intrude, but can I ask for help?
(Player presented with two options)

Player: No, leave me alone.
Alchemists: Oh, very well. I'm sorry, have a nice day.
Or
Player: Certainly, what's wrong?

Alchemist: Well, I'm trying to mix a potion but I must have dropped one of the ingredients. I don't have time to look for it. Do you happen to have any (a random ingredient e.g fire salts)? 
(Three options presented)

Player: Yes I do, here.
Alchemist: Thank you! I'll add it right away.
(Alchemists takes ingredient and mixes the potion)
Alchemist: Ah, that wasn't supposed to happen. This potion won't make me invincible. Oh well, you should keep it. I certainly won't need it, think of it as payment. Thanks anyway.
(A random potion with the ingredient's effect is added and the alchemist leaves)

Player: No, I'm sorry.
Alchemist: Damn it, my fault for losing the ingredient in the first place, thanks for the offer though.
(End of conversation)

Player: I could look for some nearby.
Alchemist: You could try, but don't take long, I'm not willing to loiter for one ingredient.
(The player could have a set time limit, say 60 seconds, to find a piece of the ingredient  nearby from either a plant, animal or chest.) Failing this, the alchemist would say:
Alchemist: Don't worry yourself, no point in wasting more time. I appreciate the offer but I'll just buy it in the next town. Farewell, my friend.
(Alchemist leaves)

Event #3 - Skooma! - An intoxicated/crazy NPC (preferably a Khajiit) is found running around near the road. (This encounter is a bit odd, some people may find it a bit out of place, like the Wild Wasteland stuff for Fallout New Vegas)
NPCs - Drugged up Skooma addict. Race would probably be Khajiit.
Actions - Walking/running around near a path, muttering to his/herself
Dialogue - Player initiated conversation, idle dialogue heard anyway.
Possible Idle Dialogue:

Skooma Addict: Pretty, so pretty. Wait, no. Ugly? No, pretty.
Skooma Addict: One, two, eat Felldew, three, four, cheese galore, five, six, get my fix, seven eight, silver plate! Ha ha ha!
Skooma Addict: The sky, wow. The sky it's just so big.... and blue... and skyish.
Skooma Addict:  The dirt, tastes like magic. Magic dirt.
If the player starts conversation - 
Skooma Addict: A smooth-skin? You're so blurry... and pink... you okay, friend?
Player: What's wrong with you?

Skooma Addict: Wrong? With.. with me? No, there's no carrots here, only darkness.
Leads to...

Player:...Uh? Do you need help?
Skooma Addict: Help? HELP?! Shiny? No? If it's not shiny, this one doesn't need it. Or does it?

Unlocks two options...

Player: Can I have some of what you're having?
Skooma Addict: NO! MINE! No one steals from a cliff racer!
(The Addict attacks making imitation cliff racer noises, his/her boy contains a bottle(s) of skooma.)

Player: I'll leave you alone.
Skooma Addict: Yes, alone. Indeed, alone and flying.
(Conversation ends)
Further interaction yields only one response:
Skooma Addict: You can't talk to me, I'm flying. Whoooooosh!

Event #4 - Cliff Racer Hunter - The player meets a Dunmer hunter fighting off a pack of cliff racers. (If Cliff Racers are using the dragon skeleton and size, one cliff racer here would be a better choice).
NPCs - Cliff Racer, Dunmer Hunter
Action - Cliff Racer(s) swarm and attack the hunter, player can try to save hunter or run away.
Dialogue - Calls for help and some dialogue if hunter survives.
Combat - They're cliff racers, so, yeah. Combat.

Possible Dialogue:
Calls for help:
Hunter: Oh Gods! Help me!
Hunter: You! Help! Don't let me die here!
Hunter: Agh, n'wahs!
Hunter: Shut up and die, fetchers!
Hunter: I will not fall!

If player saves them, the hunter could approach and initiate dialogue:
Hunter: You saved my skin there, Outlander. If you hadn't shown up those Racers would have sent me to my ancestors. Here take this, it doesn't make up for saving my life, but it's all I've got. 
(A small sum of gold could be awarded to the player, perhaps 50 or so, as a hunter wouldn't carry much.)
Player: What happened?
Hunter: I was attacked. I was just walking along and I heard this terrible shriek, I turned to look but I was set upon by a flash of wings, teeth and claws.

Player: Why are you out here?
Hunter: Ironically, I'm hunting cliff racers. They're a blight on Morrowind and I won't rest until I kill them or they kill me.

Player: I don't know much about cliff racers, can you tell me more?
Hunter: Certainly, it's the least I could do. Cliff racers are flying predators native to Morrowind. They often hunt in packs but can live solitary lives too. They eat anything, netches, guars, other cliff racers and the odd adventurer. Not much else is known about them, mating rituals, social order; we don't even know if they come from eggs or if they are born living. But, what we do know is bad enough and makes many like me set out to destroy the wretched vermin. Then of course there's the noise, that damned noise. Their constant shrieks are enough to earn them a one way ticket to Oblivion.

Event #5 - Like Father, Like Son - A father is taking his excited but violent son under his wing, teaching him some valuable life lessons.
NPCs - A father and a son, race would need to be the same.
Actions - A father talks to his son, perhaps they do something visually, but I'll get on to that.
Dialogue - Conversation between two NPCs, player can interact with them but would only receive a small reply.
Possible Dialogue:
Conversation #1:
Son: Dad, why do we have to come out here?
Father: You know what your mother is like, out here I can teach you real skills.
Son: Like what?
Father: Well, surviving in the wild. Lesson one; never eat anything you're not sure of. It could be poisonous, or drive you mad.
Son: Cool! Do you think one could make me fly?!
Father: There there, son. Be calm. Let's move on, shall we? Lesson two; keep an eye on your surroundings, never let your guard down. If you let your guard down a predator could attack or a thief could approach and rob you.
Son: Then, if they do, you kill 'em! Burn 'em! Slice 'em!
Father: There's my boy! If someone punches you, you hit them back harder - with a mace!
Son: Yeah!

Conversation #2 - This one would rely on an action on behalf of the son. If possible, the son could be holding a bow and practicing Archery. This may be hard to implement, but they could shoot at a tree with their father giving help and advice.
Father: No, no. Hold your arm out straight.
Son: I am! It won't go any straighter!
Father: Good, keep your drawing arm elbow up! You'll lose stability if you don't.
Son: Like this?
Father: Nice, you're quite the little ranger aren't you? Now, look straight down the arrow at your target. Do you see it?
Son: Yeah. I see it, papa.
Father: Now, breathe in and hold it, like I showed you. Then, loose.
(The son shoots an arrow at the tree and hits).
Father: Well done, son! You're going to grow up to be a fine archer!
Son: Thanks dad.
 
Player Interaction - Possible responses from NPCs. They wouldn't have a real conversation with the player as they are busy.
(Life Lessons scenario)
Father: Not now, I'm teaching my son.
Son: My daddy is teaching me loads of cool stuff!
(Archery lesson)
Father: Stand back, please. Don't want to risk being injured by a boy, do you?
Son: Please don't talk, I'm trying to concentrate.