A question for LordBucket;
How is leveling up handled? Its been awhile since I played Morrowind, but I seem to remember that frivolously leveling would come back to bite you in the ass, as leveling to early would reduce the amount of points you get when you level up to increase your stats with.
Now for Michal:
Finnish our training. BUT! Talk to Strillian first, he said himself that you got potential for metamagical math. Your combat and strength training is fine, but suggest that perhaps you could be very useful to the legion if you got some magical training. They already shown that there is a lot of room for special cases and individual needs. Maybe the legion could facilitate you magic training? If they do not have in house trainers, maybe they can sponsor an outside one? In fact, you just happen to hold a letter of recommendation for a trainer. Maybe they could send you there for some special training?
Also, I like the idea of hiring PC's to do quests for us. That sounds awesome.
That lady who wanted that book, left right? So we can't get the book back to her? If we still can then give the next PC you meet a quest to retrieve the book and deliver it to the lady, making sure to inform her that it was on our behest. Once you are sure the PC has done that (ask the PC to ask the lady where she met you or something) give him that useless ring we got as a quest reward.
If that is not possible;
Check to see if that orc necromancer still wants the skull from the tomb. If she does hire the next PC to go get that skull for you and give the ring as a reward.
If not, lets figure out something else that is useful that they can do for us, and use that cursed ring as a quest reward.