1.) Install OpenMW and open it.
Note; on AMD cards many things such as trees and other objects will flash, a lot. It is obnoxious but nothing gamebreaking, I still play with OpenMW just because I get better framerate.
2.) Point OpenMW to Morrowind/Data Files/Morrowind.esm.
3.) Run the game once then exit the game.
4.) Finally place these lines of text in your settings.cfg under the catagory [General] located in My Documents\My Games\OpenMW folder;
anisotropy = 0
texture mag filter = nearest
texture min filter = nearest
texture mipmap = none
-and save the file.

The following are various commands also in settings.cfg, which I have found useful. You may need to add the category (words in the [Bracket]) as well as the commands beneath them;
[Video]
framerate limit = 60

[Terrain]
distant land = true

[Camera]
field of view = 98
viewing distance = 10000

[GUI]
scaling factor = 1.6

[Input]
toggle sneak = true
always run = true

[Saves]
timeplayed = true