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I thought that ony Oblivion was leveled, and monsters level up with your character. But is Morrowind also leveled? Isn't it true that you find better loot at later levels. Isn't that called being leveled.

I'm not 100% sure about creatures. I know as you level up there are more and higher leveled creatures, but I don't know where to find that right off. I just found a page for the items you get:
Morrowind Leveled Lists

Ibrahim wrote:I thought that ony Oblivion was leveled, and monsters level up with your character. But is Morrowind also leveled? Isn't it true that you find better loot at later levels. Isn't that called being leveled.

The monsters themselves do not get stronger, morrowind uses leveled lists, which spawn a random monster or item based on player level.
( They will only spawn stuff with a level requirement equal to or lower than player level. )

However, not all of Morrowind is levelled, for example, in Oblivion, if you level up about 3 levels with just sneak, security, speechcraft, mercantile, acrobatics, etc., then you'll have a really tough time and there won't be any monsters that are very easy. In Morrowind, you can do the same thing and, although the levelled monsters will be harder, the non-levelled ones stay the same, rather than grow with you.

Does anyone know where I can find a list of which monsters are leveled and which aren't?

Also, do the enemies we face in the guild and main quests count as monsters? For example, the four Telvanni Agents in the fighters guild quest. Can I face them now at a low level, and if I wait and level up will they be easy? Same for the little cave near Seyda Neen full of smugglers.

NPCs are not leveled - those who are "human" and are named stay the same level from the start of the game. So, those who you meet in quests and have to fight will be easier to defeat if you are a higher level.

Creatures are not leveled, however, many will not appear until you level up. For example, Golden Saints only start to appear randomly when you reach around level 18, Ascended Sleeper not until you are around level 23. I will add that there are one or two exceptions where they are always present.

I am not certain about a list of them, I always refer to the construction set to find out when they start to spawn.

There is no list of which creatures are level balanced and which are not because it doesn’t work that way. When the game (or a mod) was designed, the designer placed the antagonists (hostile NPCs and creatures) and chose whether to place level dependent creatures — which the Construction Set Help File calls “ninja monkeys” — or specific creatures from the bestiary. If the designer placed a kagouti, for example, at a given position in the play area, every time your character comes to that position, whether (s)he is fresh off the boat at Seyda or whether (s)he is a world conquering Nerevarine colossus, (s)he will encounter a kagouti at that position. If the designer placed a ninja monkey there, your character will encounter a monster pitched to his/her level of prowess. A low level character might get a bouncing worm, a mid-level character might get a flame atronach, and a high level character might get a golden saint or winged twilight. So the point is, it isn’t a particular type of creature that is leveled, it’s the specific creature at the specific spot which is either leveled or fixed, at the designer’s choice. Hope that helps to clarify it.

Also, you'll know which creatures are levelled by looking in the construction set: they're the coolest looking marker ever, NINJA MONKEYS!

ragged-gothic wrote:There is no list of which creatures are level balanced and which are not because it doesn’t work that way. When the game (or a mod) was designed, the designer placed the antagonists (hostile NPCs and creatures) and chose whether to place level dependent creatures — which the Construction Set Help File calls “ninja monkeys” — or specific creatures from the bestiary. If the designer placed a kagouti, for example, at a given position in the play area, every time your character comes to that position, whether (s)he is fresh off the boat at Seyda or whether (s)he is a world conquering Nerevarine colossus, (s)he will encounter a kagouti at that position. If the designer placed a ninja monkey there, your character will encounter a monster pitched to his/her level of prowess. A low level character might get a bouncing worm, a mid-level character might get a flame atronach, and a high level character might get a golden saint or winged twilight. So the point is, it isn’t a particular type of creature that is leveled, it’s the specific creature at the specific spot which is either leveled or fixed, at the designer’s choice. Hope that helps to clarify it.

Another thing that should prove useful, leveled lists mostly consist of related items or creatures, so one list will for example contain all daedra, an another will have all kwama. There are lists that mix up creatures from multiple groups though, but they're mostly used outdoors. Also, there are multiple copies of most lists, which are identical, except for having slightly different level requirements.