I'm just wondering if anyone has worked out how far out this bug happens. Is it a different distance depending on your PC/graphics card? Who has ever seen this actually happen, and what actually happens?

At the moment, Cyrodill is placed pretty far out, its south-western most cell is -133, -36. I'm not sure if this is too far out. I could probably test to see if things go wrong, but i'm not really sure what to look for, and i'm guessing it won't be the same for everyone.

So have any modders came across this issue before?

This is completely off the top off my head, so it's probably completely wrong - I think it's 200+ that causes wierd arm flapping glitches and stuff.

As far as I know, we can't exactly tell how far is too far. The cause of the problem is that Morrowind stores positions in floating point variables, and these become unreliable if you got too high - however, where exactly "too high" is depends on the hardware in question. So what's working on one CPU/GPU might glitch on another.

Issues I faced were on my older system at a range of less then 80 when they began and almost 100 when they got unbearable. That was on a Compaq with 1 gig ram and a TNT video card. On my new system that runs Oblivion at full effect I don't get that issue until about the 160 mark and then around 185 ish it gets to be pretty bad. I have never been able to reach a 200 mark on any of my systems that I have tested on. So for my part when it came to building away from 0,0 I tried to stay under 100 for those folks who may have had low end systems. Now though you would likely get away with more then that due to many folks getting upgrades and such for Oblivion.

Best bet is to test on your system and then post a minimum requirement for your system specs and build it as far as you can without having the issue. Be sure that you test with more then one cell of land though. Best testing method I found was to use TESFaith and move the 16 Balmora area cells out to various distances. :)Best wishes and hope this helps a little at least.

TW