Does anyone else have this problem and can you help fix it?

The Morroblivion Converter does NOT replace any files. So, if you have a bad mesh or texture, simply doing the conversion again will not help. To totally uninstall the Morroblivion conversion so you have a clean slate to start over, get a copy of Tes4Fies from Nexus, run it, and then you can try to run the conversion again. Alternatively, try downloading and installing the OMOD. This will NOT give you all the meshes you need for the new Master project, but it WILL overwrite some or most of the other meshes/textures. This might clear it up for you.

As David Budreck said, the converter does not overwrite old files. There is however an easier way than manually deleting the old files. Use the GUI interface here and reconvert. It is programmed to automatically replace old files.

Also a closer screenshot will be helpful ;)

I'm not an expert or anything, but downloading this may fix your problem. I think it comes with a few texture/mesh corrections; correct me if I'm wrong.

I tried to take a look at what you suggested, but the link is bad. What is it that you were linking to?

I have this problem as well, do you use the OMOD? I used to have no problems with the OMOD until one day I started Oblivion and some textures just like the picture were messed up.

I have no idea what could be causing that type of error. The only thing I can suggest, is do a total uninstall by using Tes4Files available on Nexus. If the OMOD gives an Option of Un-Installing, do that first. Then Re-Convert watching closely for errors. Then reinstall the Morrowind_ob.esm Master and it's Support Files.

I recently did all of that and the textures are still messed up... Hopefully a texture pack or fix for this will be available soon because it is really bad in Mournhold.