I'd recommend disabling East Empire Company Expansion if you have it, then generating distant land and re-enabling EEC only after the distant land is generated. It's actually a limitation of the Morrowind engine rather than MGE's fault, the farther out you go the more problems Morrowind has with generating terrain. I believe the Distant Land Generator can only handle land so far off from (0,0), but it usually isn't a problem, it's just that the East Empire Company Expansion builds it's land in cells like (210, 501) which is, well, not very close to Vvardenfell or even mainland Morrowind for that matter.
It was the East Empire Company Expansion that was causing the problem, and that was because it had land really far away from Vvardenfell. You know, I do think I ran into this error before. While I'm downloading all the mods I can find at MWMH, does anyone have an idea what could be causing my error other than 'a file missing somewhere'? (That's the extent of my troubleshooting ability.
