Maybe you should buy a new graphics card in any case: such a slow card on a p4 is a shame... it will slow you down a lot on every game, not only morrowind. Buy an ATI radeon 8500 or Geforce4, they come cheap now that new cards are coming out.
To run, use the always run option which should be bound to the caps lock key: hit it and you run continuosly (spelling? bah...), hit it again and you are walking. Personally I always run (good for athletics) and use sneak mode to walk.
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Never attribute to malice that which can be ascribed to sheer stupidity
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