In terms of Lore, it lightens your burden, so you can carry more for a time, or continue moving while over-encumbered.
In the game, it actually just increases your encumbrance limit.
You'll have to get a Drain Attribute spell from any of these people: http://www.uesp.net/wiki/Morrowind:Illusion_Spells#Chameleon And then make one yourself.
There isn't one. There is only weakness to fire, frost, shock, magic, and normal weapons spells in oblivion. There is a weakness to disease spell in Morrowind, i think.
no
Feathers that you write with are called quills.
By using a Restore Strength potion/scroll/spell, or getting blessed with "Restore Attributes" at a temple shrine.
Yes actually you can, there is a magic spell called "Levitation" you can buy it at some of the mages guilds, I believe.
No Morrowind is a one player game, but I've heard of a failed beta of an online Morrowind for the PC.
All of "arena" is not as graphic as morrowind by quite alot. So everywhere you look morrowind is going to look better, but they are both fun.
You cannot become a Frost Atronack on Morrowind, the best you can do is summon one.
No.
quail is you mean a bird; quill if you mean a big feather.
Yes, you can become a werewolf in "Morrowind: game of the year edition", as it comes with the "Bloodmoon" expansion.