I am interested why you are willing to exchange a great view-distance for a multi-monitor setup.

To me, a high view distance and dynamic shadows seem far more important than being able to play such an old game on multiple monitors. :)

You should take a look at the unlimited view-distance option. It looks surprisingly great because the colours of the objects far in the distance get continuously more blue-ish, which looks really good.

Edit: Wait. :) I've taken another look at your screenshot and I think you've even enabled the setting that I mean. I think, if you've got that setting enabled that continuously adds a blue-ish tint in the distance you are always going to get an unlimited view distance.
If you enable more cells the blue tint should just begin further in the distance than with a lower number of cells. :)

I don't know, sorry.
Maybe there's a setting for that. :)

Yep, you're right. I didn't exchange anything. :) I have everything on max, and pushing the cell-draw distance past 50 is technically *higher* than what the max/ultra/insane settings from MGSO would have you do. I can push it to 100 and I can see RedMountain and Vivec entirely clearly.

The blue tint you're talking about is known (in reality) as atmospheric scattering, because the light filters through the atmosphere and curvature of the earth reflecting more blue by distance because the air particles scatter that lightwave the most. It grows more blue by distance because of the increase in particle density in the air.
In games it's generally called "fog", or in this case exponential fog, which tries to aproximate intensity of light reflected by the atmosphere according to the distance from the camera. If I push back the draw distance further it's possible to see the whole island without any haze, but it's unrealistic as you were pointing out.

I will try the Graphics extender,although the Morrowwind graphics don't bother me.
Look, you really can't expect a game made 12 years ago to have state of the art graphcis.
Frankly, if old graphics bother you, you are going to have trouble with older games.

I was already familiar with the principle. :)

As a non-native speaker of the English language, I wonder if you actually call the effect "atmospheric scattering" in a casual conversation.
"Dude, look at that atmospheric scattering. It's intense!"

Its not the graphics as in Character models or enviornmental textures, its the draw distance as in the fact that I cannot see ahead of me because the whole land is covered in "fog" because computers back than could not handle entire landscape being rendered.

I didn't mean to sound superior or anything so I hope you didn't take offense, I just like sharing what little information I have about the world.

Some certain circles use it in casual conversation; I'm a developer and an artist so it's commonly thrown around any time landscapes or lighting are discussed, but you're correct in believing that it's not something casual people say in passing. :)

None taken.
I can relate to that. ;)
I'm just interested interested if there was another way to describe atmospheric scattering, because I suspect that if I were to use that word at all most people wouldn't understand me anyway. :D
I realize that "blue-ish tint" probably sounds inappropriate, so I'm probably better of describing it as "mist" -as you suggested-. :)

Oh! ... I believe "Haze" would be the most applicable word. :)

Thank you. :)

By the way, the way you are getting the most out of the distant land feature is having the mod Tamriel Rebuilt (regardless of whether you're going to use it for playing or not) activated during distant land creation in MGE XE.
That way you are not only going to see the whole island but also the mainland in the distance. It looks really good! =)

Also, I'd highly recommend the mountainous red mountain mod. It not only looks far better from the distance than the vanilla Red Mountain but is also more lore-friendly than vanilla: Red Mountain is supposed to be the biggest volcano in Tamriel and if Morrowind had come out a few years later, it likely would have looked more like that.
The only disadvantage of the mod is that it also replaces a lot of rocks with more spiky ones, which I like only in the vicinity of Red Mountain. - I created a mod once that made the rocks far away from Red Mountain normal again but I didn't upload it (because, being an unexperienced modder, I wasn't sure I did everything correctly) and haven't got it anymore, unfortunately. Otherwise I'd share it. :)

I hope you don't expect that this is what Tamriel Rebuilt does, because it isn't. :)

That's true but I think with the mod it looks awesome.

You're welcome. :)