Things You Cannot Do

Although Morrowind is a freeform game and there are a lot of things you can do (including quite a few that you should not do), there are several things that you cannot do in the game as it was released.

This is not to say that you can't sit down with the Construction Set and build a plug-in that would allow you to accomplish these things. But they cannot be done in the game as it was released.

As for other things, go talk to M'Aiq the Liar (he's on a little island just east of Dagon Fel) to find out that:

Many of these things were things that fans wanted, but were not included in the game. Several of them harken back to issues with Daggerfall. For example, rope was an item that appeared in the Daggerfall manual, but never appeared in the game, and several players spent months (real time) searching for dragons in Daggerfall (there was a dragon in Redguard, though, and you got to kill him). As for the nudity thing, that seems to have been one of the earliest things to be modded.