Got a quest to get dues in some hole in the wall for the mage guild.
Sweet talked the mage into giving.
1) question Am I supposed to kill everyone in the cave? Because I am getting attacked

By the way, I never saw so many Cliff Racers. They were kicking my butt and I didn't have the escape hatch spell. But I had to swim under water to Suron to survive. If I do have to take out the guy in the cave I will need a sun screen.
Don't remember the Cliff Racers that plentiful or deadly---- along with some nasty rats. .

(I started this game once, had fun, but take work when it shows up. Started again and probably will have to stop. But it is a fun game.)

1) no

Cliff racers belong to the islands natural fauna - you'll even find them near Seyda Neen. You are the "intruder". Defend yourself, run away, do what you like. They are neither very powerful, nor are they very clever (even when you are attacked by 5 cliff racers at the same time, they don't attack you together most of time, they queue up and wait until it's their turn to attack you. Just make sure you cure the diseases they sometimes inflict on you (goes for rats, too, by the way, but less frequently).

"Sun screen to take out the guy in the cave"?

1) Your question was "Am I supposed to kill everyone in the cave?" I don't know what "supposed to" means - in Morrowind you're not "supposed to" do anything - for example, you could run away.
2) It happens, especially when more than one cliff racer spots you independantly of the others. Well (see above), you can always run away, and, if you want to, return and take them on one-by-one. You're not supposed to be suicidal (but you can be, if you want).
3) Sounds like you're having fun :-)! But again, there are always alternative ways to deal with such a situation, like running away, relying on healing (spell, scroll or potion), or magic (for example, conjuring minions is good for distracting enemies - or even for letting them do all the fighting).

I still wonder about the "sun screen" :-) - a joke, or are you playing a vampire?

I just found it strange that the dues Lady was not hostile, then every one else was. So I wondered if I had screwed up.
The Cliff Racers were tough because I had let my axe get worn to a nub. It simply was no longer effective. I bought a back up Just in case along with a couple hammers.
I was getting flamed by the fire atronach, so I figured I would need better heat protection. Sun Screen.
Ya, I like this game a lot.

Boots of Blinding speed.
Escort duty. But she kept getting in the way when we were attacked.
Now, I pulled back and a Cliff Racer seems to have killed her.

Failure as an escort but I got those great boots.
But I want to be clear.
Morrowind as no Reputation Rating. So, "hey, she should have picked on a Cliff Racer her own size." And now just move on?

Move on or reload an old save - it's up to you.

Move on it is--- at blinding speed I might add.
Thanks