You're really going to want to research a UI mod that's suitable for gamepads (and maybe a gamepod compatibility mod if it's easier than using xpadder or whatever), as the UI is very mouse-centric. I don't know what's out there, though. Probably a large-text mod as well, again, assuming one exists.
Oh, my gamepad already works in Morrowind. I simply can NOT play any WASD games with the keyboard and mouse, nor would I want to. The gamepad is and always will be easier and more comfortable.
I bring this up though because I have played Morrowind a few times (never got past level 12 or 13 IIRC) and the only problem I had with it was that I felt I had to use the mouse for all open menu tasks. But I don't remember anything else being a big deal. Could you expand on what you mean a little???
And thanks for the suggestion of the large text mod. I would've totally forgotten that and probably missed it the first time I played on my TV since I sit several feet away from the TV. Small text will not do. Gonna make that my first priority. THANK YOU.