Ald Velothi was the team's first try at writing Morrowind dialogue, and due to its relative success, the project continued its life through our other creations.
The village is a racist one. While scouting the NPC's, we noticed that it was exclusively Dunmer, and we decided to build a story around that. In a shack near the top of the town there is a woman who enjoys inciting racial hatred, she speaks particularly nastily of Khajiits.
Not everyone in the town believes her propaganda, but those who do are under the impression that Ald Velothi is the best thing since sliced bread (which by the way have never been discovered in Morrowind). The town Hetman, who is an idiot and the author of Ashland Hymns, is hanging about near the docks. There is a story involving a daughter and her mother - the father is long gone and you can find out both sides of this story by talking to both the daughter at the water front and the frail mother in the family home.
If you find yourself with time on your hands, ask around; you may learn of the sticky end that befell the only non-Dunmer resident ever to live here... Ask around a bit more and you may find the murderer... It's not as obvious as it seems - in fact this person doesn't seem to be racist at all. Ahh, the effects of peer pressure....
The Hetman is located inside the outpost at the top of the town. He now gives you details for the quest involving the kidnapped pilgrim. If you return her safely, he begins to see past the propaganda that the racist lady is spewing out and realizes that maybe outlanders aren't all that bad.
Due to the way the guards work in Morrowind, we could not give them unique dialogue to avoid conflicts with other plugins, since the guards are not individuals, but clones.