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The Morrowind Chapter of your character's life begins in the small coastal town of Seyda Neen...
1. Once you have finished creating your character, on your way out you'll have to talk to the Census and Excise Officer before being let go into the world. It's here you'll find your first quest and learn there is more to your coming here than meets the eye.
Tip: Submitted by Harri
If you need some cash at the beginning then nick the limeware platter in the Census and Excise Office. Before the guard comes and says "you have only just been released but since you dont know the law, we'll let you go," open your inventory and put it back on the shelf. Once the guard has had a go at you, then nick it again and go and sell it at Arriles tradehouse. You should get around 600 if you gave the ring to Fargoth and you will be able to buy yourself a relatively good spell/weapon/suit of armor to start off the game.
2. He directs you to travel to Balmora to speak with Caius Cosades, and that you'll want to visit the South Wall Corner Club in Balmora for more specific directions to his residence.
3. There are two easy paths to Balmora, but one is longer and more dangerous. You can either take the Silt Strider which is opposite the C & E office up a hill, which will cost you some gold, or travel by foot. It's a fairly short walk compared with most in the game, and not too dangerous but there is some risk involved. To do this, travel past the Silt Strider and continue to a path straight ahead on a hill and then follow the signs into the big city.
4. I would also suggest clearing out the Smuggler's Cave near the Silt Strider (a door near the pond just past the Strider to the left) before you go. You might have trouble with the Mage, and if that's the case, take what's in the crates and run out without bothering to stay and fight.