Greetings, my name is Beave and I have been following this project for a couple of weeks. I recently added a few quest fixes and other scripting-related functionalities, such as the "price on your head" topic, to version 0.35.
Aside from that I have been working through quest dialogue - original Morrowind has a TON of dialogue entries for comments after quests are finished. While some provide a bit of interesting backstory, most entries follow the generic "thank you again" and do nothing but clutter the dialogue UI. With Oblivion this is exaggerated because of how the topic font is larger.
I have discussed this matter privately with David Budreck, and he is in agreement that clutter dialogue would be nice if removed. However, the biggest issue I have encountered in doing this is that topic filtering for individual entries tend to rely on other entries, such as the clutter dialogue, to help filter each other out. Consequently, removing clutter dialogue requires that I tweak the journal filters for most of the other quest entries.
The link below allows you to download these dialogue changes, which currently extends to the entire Fighter's Guild questline. I have tested most of the entries, but David is hesitant to incorporate such dramatic changes until they have undergone more extensive testing. By now I have run through the FG quests several times, and I fear that I may drive myself insane if I do it much more. Therefore, I ask that if you download this mod, be sure to test as many different quest branches as possible.
http://www.mediafire.com/?ydt66ci6k4cfev8
Also, this second link will give you a text file with a list of commands. It raises all of your attributes and skills to 250, health and magicka to 1000, and gives you 10000 gold, the Skeleton Key, and a Repair Hammer. This is especially useful for starting a new game and jumping in quickly to test something. Download to your Oblivion directory. In the console, enter the command "bat TestEquip.txt" to execute the list of commands. You can also skip most of the CharGen process by jumping off the boat and running off into the world instead of walking down the dock.

Beave, Sot and
Beave, Sot and RobertNeville777 have also been working on dialogue. Sot is working on voiceing dialogue here: http://morroblivion.com/forums/morroblivion/general/1648 and Robert is working on Voiced Greetings here: http://morroblivion.com/morrowind-voiced-greetings.
Perhaps you guys have already worked it out, but it seems to me like there could be some overlap between the three people. It would stink to have voice actors work on voicing dialgoue that would later be cut, etc.
Just thought I should let you know so that you can do whatever you need to.
I can imagine how crazy a job like this would be. Thanks for your hard work!