Well, since you asked for it

I'm going to post a howto here. Don't say I didn't warn you though! It requires a little experience with the command prompt.
How to repack morrowind, tribunal, and bloodmoon bsa files into one file:
use google to search for a utility called "bsapack.exe".
create three temp directories wherever you wish: "morrowind", "tribunal", "bloodmoon".
Copy morrowind.bsa into the morrowind temp, copy tribunal.bsa into the tribunal temp, and same for bloodmoon.
copy bsapack.exe into each temp directory.
click Start->Run... and type in cmd into the box. A dos prompt should pop up.
Go to each temp directory that you made and type:
bsapack unpack [name of bsa file].bsa
(replace [name of bsa] with morrowind, tribunal, and bloodmoon for each temp directory-don't include the brackets)
in each temp directory all of the icons, meshes, etc will appear. THIS WILL TAKE A WHILE FOR EACH TEMP DIRECTORY.
now, go to your tribunal directory (still at the prompt, DO NOT USE EXPLORER).
type in:
xcopy /e *.* [location of morrowind temp directory]
go into the bloodmoon temp directory and do the exact same thing. REMEMBER to copy tribunal before bloodmoon.
Now the morrowind directory should contain all of the files.
Now type:
bsapack pack morrowind_new.bsa
this will take all the files and repack them into a single file. This will take a while. Go make yourself a bowl of cereal. Now, go to your original data file directory, delete morrowind.bsa and copy morrowind_new.bsa. Rename the new file to morrowind.bsa. Now delete tribunal.bsa and bloodmoon.bsa from your data file directory.
Here's what you do to the morrowind.ini file:
find the [Archive] area. You will see two lines like this:
Archive 0=tribunal.bsa
Archive 1=bloodmoon.bsa
You can either remove these two lines now, or simply put a semicolon ; in front of the two lines to comment them out (disable them) just in case.
Now fire up morrowind. If you get no errors, that means everything is peachy! If something bad happens, uncomment the two lines from morrowind.ini, and copy over the old bsa files from the temp directories that you hopefully haven't deleted yet.
*phew*!
IF THAT WASN'T ENOUGH, HERE'S ANOTHER HOW TO!
Many mods have their own files in the meshes and icon folder. If you're installing a new mod, unpack all these art files into a temp directory. Copy bsapack.exe into the temp directory. Fire up the command prompt and type in bsapack pack nameofmod.bsa. Now add a line to the [Archive] area of the morrowind.ini file:
Archive #=nameofmod.bsa
# represents the next number after the last entry under [Archive]. If it were Archive 1=bloodmoon.bsa, then # would be 2.
If you have a mod with 11 megs of art data (represented by "size on disk"), the packed bsa file will only take 10 megs "size on disk". And it will speed up load times a little too.