if you manage to enchant a ring or some item with 100% weakness to majicka + 100 points of drain health for 1 sec u could 1 hit the weaker goblins... at your level i dont think the stronger goblins will even be there
if you're still wearing chitin, you probably should not be in mournhold...
try getting some glass armor... it's literally 10 times better than chitin in terms of defensive stats...
try stealing a few pieces from the redoran vault or the fighter's guild in ald ruhn
if you're going for ald ruhn, try enchanting an item with a high enough level of unlock on touch or getting an ekash scroll
as for weapons... i guess you like bows so try this quest? and say you like bows
http://www.uesp.net/wiki/Morrowind:Miscell...anat_Ebony_Mineyou really should not be in mournhold... actually... if you ARE in mournhold why are you using chitin? not dark brotherhood...