The grass is a little grainy..And the log cabin is awesome, all things considered I live in a log cabin. 0_o You can't beat the real thing though. What the tileset really needs is shadows, that way the whole thing wouldn't look so flat.
I personally think the combat system sucks in Morrowind, even though it was a great game. Be Forewarned, the combat detection system is nothing like Oblivion.