Morrowind sees wine as a debugger and refuses to start.

[Saulius Krasuckas]

> > I successfully installed Morrowind. Unfortunately, the game won't
> > start. It issues a small popup saying a debugger has been detected,
> > and that the debugger needs to be closed for the game to run.
> > 
> > Is there any way I can avoid programs to see Wine as a debugger?
> 
> No, they don't see wine as a debugger, what happens is that if wine
> can't handle something, it will start a debugger to help developers work
> out what is going on... The debugger is a symptom, rahter than a
> problem....

in any case, i would suspect windows version set to win98. try setting it
to nt40. doesn't that help you?