I remember running Morrowind fine, and it should have since I actually got that computer specifically for Morrowind after playing it at a Compusa for an hour and realizing that I must have the game. Oblivion on the other hand ran really poorly on my other computer (not the same one I got for Morrowind, this one was after the Morrowind one, before the one I'm now) and I was forced to turn down a lot of things about it.
And the load times are seriously incredible. I can quick save in one part of Megaton, go to the complete opposite end, hit F9 and it will load up instantly. It almost feels like a gameplay mechanic more than a quick load it's so well optimized.