there was also my mini tutorial on how to use any TTF font for the UI, but it went down the thread limit
so, in brief, using Oblivion Font Generator from
here or
here in this
order will give you some files FNT and TEX ) to put into Data Files\Fonts, next you modify your Morrowind.ini, replacing the references to the default fonts with those to the new fonts, and you'll get:
result1 /
result2.
in morrowind you can only replace 3 fonts, so you should mix and match (font types and sizes) until satisfied.
however the catch is that i don't remeber exactly the things that are different for Morrowind when generating the fonts, but as for as i can remember, setting the bitmap in step 5 was vital ( for Morrowind its 256 in the picture, but Oblivion wants 1024, this determines the TEX file size)
also play around with Width %/Height %/YPos Off, a good indicator of success is that when the game loads you see the Loading data..mod... text, if you only get some brown squares ImageSize is wrong or those antialias things in step 2, if tho font is too big/small see Font size, if you only see the top/bottom part of the characters you should play with YPosOff...things like that
enjoy