SKYWIND, currently one of my favourite development project/blog. All the work they have put into remaking Morrowind in Skyrim's engine is just amazing. When I first saw this years ago I was skeptical, but after all their progress I can see that they are dead serious and just keep chugging forwarding on this project. Here is their latest video showing some locations and assets: So for any of those Elder Scroll fans out there, think about stopping by and check out their blog or even the forums.
http://tesrenewal.com/forums/morroblivion/mods/753 It looks like they got a good amount done, but never 100% finished it and decided to move to the skyrim engine to make a more "complete" and improved experience.