All of the races are viable options, but a few are more interesting to play because of Morrowind's setting. Dark Elves make ideal characters, since the populace is primarily comprised of Dark Elves, and the lore of that race figures prominently into the game's plot. Dark Elves make good mage characters, although if you want to play a character that predominately casts spells, High Elves get significantly more spell points. Argonians and Khajiit are also interesting choices, since members of those races are predominately relegated to slavery in the lands of Morrowind, although they unable to wear boots. That penalty is a significant disadvantage, since you won't be able to wear some of the best magic items in the game, such as the Boots of Blinding Speed. Khajiit make good thief characters, while Argonians are good balanced characters. Imperial characters are also interesting to play, since your character is essentially on an Imperial mission. Imperial characters make good fighters and the daily charm ability "Voice of the Emperor" is incredibly useful.
You need to advance any combination of your character's major or minor skills a total of ten points to be able to gain a level. Skills advanced through training count towards this total, so if you have the money to train any major or minor skills significantly, you can gain a whole bunch of levels at once. Through training, using skills and reading skill-enhancing books, you can raise your character's level into the 70s, although a level 30 or so character with decent equipment is already capable of completing the game's main quest. Morrowind is not a game that places a great deal of emphasis on leveling, since it's so easy to do through training or through artificial use, such as casting low level spells over and over again in a safe environment. If you want to generate as powerful a character as you can, as fast as possible, however, here are some useful tips:
