Probably the most open ended game I have ever seen...
You begin the game on a ship, and the game is played from 1st person at first so you can't see yourself, though later you can play from 3rd person if you wish to. After you get off the ship you travel to the customs offices, where you choose your race. You may choose from several races including Argonians, who are lizard people, a few human types, and many other races, which each have their won unique natural abilities. Next you choose your class, your class determines what skills you will be good at, such as combat with different weapons, alchemy, and several other skills. After this is chosen you also choose your birth sign, all of which have special abilities and you may choose the one that best suites your tastes.
Once this is complete you are free to explore the world of Morrowind. There is so much for you to do there is no way I could explain it here. But you are free to do what you wish, you may talk to anyone you wish, fight who or whatever you want. You do have the ability to fight whomever you wish, but if you attack them the guards will get you for murder, and you must pay a fine or go to jail, unless you can convince your target to throw the first punch. You also have the ability to steal, and will get off scott-free if no one notices, but if they notice you will be fined and have to give the stolen item back if the guards catch you.
Besides having all these things to do, there is also a story line that you will follow. The story line is the same no matter what race and class you are, and will carry you to the farthest reaches of the world, so it is worth progressing the story so you get stronger and find the many towns and such scattered over the land of Morrowing easily.
There is too much about this game to explain, so all I have to say is go out and buy it! now!