The thread (and its continuation on the Official Morrowind Forums is concluded, the discussion more or less ended - for the moment (there have been several other attempts at deciphering the Dwemeri language).

The raw data can be found here, while the findings can be found at The Academy for Dwemer Studies.

For the relatively small amount that there is, the results are heartening - there are two different sorts of Dwemeri writing in Morrowind. One is Dwemeri script (found mainly on certain Dwemeri doors and pipes), the other is the "runic" language found in the books Egg of Time and Divine Metaphysics. WormGod, one of the devs of Morrowind and the only one to have really used anything Dwemer, suggested that the books could be translated. Unfortunately, the group could not come to any solid conclusions on that.

Dwemeris script can be translated - it's a one-Dwemeri-symbol to one-English-letter switch. Visit the Academy for the (currently incomplete) key, and you'll find a few little Easter eggs tucked away, including one very touching one. You'll also find a True Type font if you want to stick some script into a plugin somewhere.

What's left to be done? A great deal. There's still the matter of finding the remainder of the symbols for the script (which will be difficult if not impossible unless dev assistance is given - not enough script exists to deduce the other letters), and the major task of translating the books. Very few Dwemeri words are known to us that have fairly solid translations, and it is not much to go on.

My thoughts on all this? Well, besides bloody well loving it, I think there's one book that is very key to the whole mystery - Chimarvamidium. Bits from the book - specifically the word "chimarvamidium", a Chimeri/Dunmeri/Cyrodiilic corruption of the Dwemeri "nchmarthurnidamz" - have had some importance in discussions. I'm trying to investigate this lead in my spare time, which is admittedly little.