First of all, thanks for mentioning the Ravenloft mod :-). I think I know Morrowind and its mods quite well, but this one was new to me - probably because I'm normally not interested in "optical enhancers".
But Ravenloft is a lot more than that: It provides more or less unlimited storage, 3 dungeons (which I haven't explored yet, but they are said to be huge) and a teleporter to many places in Morrowind, Tribunal and Bloodmoon.
Moreover, it's convenient to use - with the help of an amulet which you can either find in Seyda Neen or add to your inventory with a simple console command (note that the mod readme contains a typo: the name of the amulet is "RavenloftAmulet", not "RavenlofAmulet"), you can go there at any time. And it should be totally consistent with all other mods, as it lives in its own world with no interface with the rest other than the amulet and the mod-internal teleporters.

I'm running Morrowind on Windows 10 and didn't encounter a single problem with the mod - I used it for about an hour so far and explored most of the house, including a quick visit to the Starter Dungeon and the Tranquility Room (which I think is one of the secret rooms).
I may be wrong, but your description sounds a bit like a faulty mod installation, possibly by copying the mod files into the main Morrowind folder (instead of Data Files)? Or is there anything wrong with the mod files themselves? You may consider re-downloading the mod - I'm using version 0502d, by the way, downloaded from MMH. You do see the mod in the Data Files section of the Launcher, and it's properly activated?
You could also try to get the amulet via the console instead of picking it up.
Good luck!

Has this installation ever worked before? If yes, then it might be a good idea to simply un- and re-install the game. No guarantee that the issue goes away then, but vanilla Morrowind doesn't do what you are describing normally.

Otherwise I'm guessing at a registry issue. Happens, for example, after an incomplete de-installation, or when you simply copy the Morrowind files to your hard disk without properly installing the game, or when something else has screwed up the registry entries for Morrowind.
If you're familiar with browsing and editing the registry, you can check the Morrowind entries (if you know what's supposed to be there), or un-install Morrowind, delete all Morrowind-related entries (if there are any left), and re-install it. Don't do this if you are not familiar with registry editing!
If you are sure that Morrowind was installed properly, and there are no registry entries for Morrowind left after un-installing it, then these entries had been corrupted (and the game should work after re-installimng it), or your problem has a different cause.

Uninstalled and cleaned up the registry and that wasn't the issue. I am not meant to play this game. Even in windowed mode nothing appears after I click play except for it shows up in task manager but doesn't do anything.

- Has Morrowind ever worked on this PC? Are you launching other, comparable games successfully on this PC?
- Are you using a Windows OS (XP or later)?
- Can you rule out issues with your graphics or sound drivers completely?
- Are you using the GOG version of Morrowind, installed via the standard GOG installer?
- What happens when you don't press "Play" but one of the other options of the launcher, for example "Data Files" or "Options"?
- Have you tried to run Morrowind.exe directly?
- Is it possible that your PC is preventing Morrowind from running for security or integrity reasons (like DEP)? I'm NOT recommending to disable virus protection, as virus protection is more important than running Morrowind, moreover, Morrowind has never been hampered by virus protection, to my knowledge.

I have no idea what exactly happens when you press "Play". A probably far-fetched possibility is that the software is accessing codec's (when it tries to start an intro video, for example) and falls over there due to an incompatibility. Perhaps a more knowledgable person knows whether or not a codec issue is a possible cause here.

I may have solved this problem. I was having similar issues with mudrunner and bioshock. I updated my gpu drivers with a clean install, whereas my last driver update was not a clean install. Both of those games now work correctly I have not had a chance to try this one yet but am hopeful it too will work properly now.

I have found a solid solution to this issue. Windows 10 was removing the OpenAL drivers and upon reinstalling them I am no longer having issues with games using them.

It worked I looked up openal drivers for win 10 and also put run as admin and win 7 compatibility and it instantly fixed my problem. This was on steam and gog versions got both ^.^. Also for reference, running MGE 3.8 with Rebirth 4.7 and MCP latest. This was awesome fix thanks! Not even openmw could fix the issue.

My Morrowind works fine for the most part, but the dialogue is not working, but the rest of the audio does. How to fix this?

Are you talking about when you walk by a NPC and they say something to you? If you are talking about the conversation panel, that is not voiced.