Try a utility called Cacheman. It improved my performance by about 50%. You can get it here:
http://www.outertech.com/

When it loads, go to settings and load the "Games" profile. Also set up the program so that it loads on startup and goes to the taskbar on close. Before you start a game right click on the icon on the taskbar and select recover memory. I found this program helps both Morrowind and Gothic 2 run better and access the HDD less.

<img src="/ubbthreads/images/graemlins/kitty.gif" alt="" />


I will call you "Squishy", and you will be my squishy! OW! BAD SQUISHY! - Dory, Finding Nemo