I was looking at the racial's and personally I believe it could be done a lot better then copying vannila Morrowind, As it stands it is highly unbalanced for some of the race's, some races are clearly superior stat wise to other races, now this may be close to what was in Morrowind and it would work for Morrowind as Morrowind was more slow- aced when it came to combat however this isn't Morrowind, this is Skywind and Skywind uses Skyrim's mechanics and Skyrim mechanics include things such as Concentration spells, which Morrowind did not have so I believe we can do much better as we have much more at our disposal, Morrowind didnt't really have "after effects" either such as disintegration.
In Morrowind and what I saw of the Racials, the High Elf Race had both an elemental weakness and a magic weakness to boot which combined add up to about a 75% weakness to fire, frost and shock effects and a 50% weakness to non-elemental destruction magic such as absorbtion spells and all they got in return was a 75% disease resistance which became redundant when you contracted corprus and gained full on disease resistance, now here is the thing why would people use this race knowing it handicaps them when compared to the other races? Yet on the otherside we have the Dunmer race who had a 75% resistance to fire based attacks and they had no weakness's whatsoever, tell me how this is balanced between these 2? the Altmer don't get enough in return for their weakness's not when compared to the Dunmer , all races should feel equally as attrative to use as one another to the player, some races shouls have abilties unique to them that make them stand out among the rest.
As for their racial abilties, many of them are pretty good however we could expand on the diverseity... I am also working on an overhaul mod of my own and had the idea to give certain "weaker" races (meaning the races who have the least benefits) with an advantage that the other races do not have, The Altmer Race for example could have a passive 10% damage bonus to all shock spells that they use, this would be rather significant bonus to them and help make up for the massive weakness's that they possess, the Nords could have a 10% bonus to Frost Spells. Khajiit could take less falling damage perhaps? Redguards could have a slight bonus to their attack speed? adding more things like this could help make each race feel unique and fresh so share your ideas another idea is to simply lower the abilties to less insane levels so instead of a 50% weakness to magic and a 25% weakness to each element the magic weakness could be lowered to 25% as well or the elemental weakness's could be removed entirely.