Windows ME is IMO the WORST OS ever to be released for public consumption... tell your brother to get rid of it (go back to Win98SE if need be, XP would be preferable to both)
Having said that... it could be a couple things, how much memory has he got? It could be trying to swap to disk and Morrowind might not like it. Have him run chkdsk on his hdd, and make sure he's go plenty of free disk space. Close all the programs possible to free up memory. It could also be a driver issue... upgrade the video and sound drivers.
And just in case you forgot... get rid of WinME
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