The most common reason for an invariable crash in the very beginning was lack of the latest sound card or video drivers, particularly sound card drivers.
I couldn't get anywhere in the game with out replacing all sound and video card drivers.
Have you checked yours?
Yes, before I even loaded Morrowind. My soundcard is old--a SoundBlaster Live Value, with a 2001 driver(!)--but the 2003 update doesn't touch the drivers, and only updates other features.
Okies apart from the official game and its two expansions I could not live without:
Giants Wilderness Mod Morrowind Addidtions Supper Adventurers Better Heads
