I hope you have nothing against restarting, because if you're anything like me and really get into the game, you'll be restarting your character a good 50 times or so. As for mods, you can find many great mods for upgrading the textures and overall graphics of the game. For your first time, those are the only mods you need. I suggest the Better Bodies mod. Now, I'm a reader, so I rather enjoyed the dialogue system of Morrowind, but I know not everyone has my patience, so results may vary.
You know what I did when I first started? After getting some starter equipment from the shop, I picked a random direction on the map, and I just started walking. That's one of the best parts about that game, you can go anywhere, do anything. If Morrowind was a 9 out of 10 on a scale, I'd place Oblivion at 2 out of 10. When you hear people saying Oblivion is easier to get into, it's true, because it's essentially 1/5 of Morrowind's content. Many modders consider Oblivion to be "dumbed-down" compared to Morrowind, made for the more mainstream gamer.
Don't expect anything when you begin playing, keep your mind clear and open, and the game will draw you in. And watch out for Cliff Racers. May God have mercy on your soul if you run into a pack of those in your early levels.