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Instead, if you keep *both* files there and simply create a new shortcut directly to the cracked. The Morrowind Launcher itself must run some sort of check or something. exe with the cracked one by renaming it - when I tried, it loaded the game okay once and then decided I didn't even have a CD-ROM drive every time after.
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Morrowind seems to really dislike it when you try to replace the real. Anyways, I tried their strategy and it seems to work quite nicely. Somebody posted this solution.I thought it was in this thread, but now I can't find it. Having trouble with the No-CD crack only working one time? Read on!
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