What is the best armor in morrowind game of the year edition?

Well, that depends on numerous things. If you have a good enchant skill then heavy armor is the way to go, as the primary disadvantage (weight) is effectively elimanated, and daedric has the best armor rating, enchant capacity and looks amazing. However, if you can't get constant effect fortify strength 50 points on self then heavy armor will severely reduce your carrying capacity. Light armor has (comparitevly) little protection but you don't lose 350 pounts of carry space to it. If can get the best medium armor set (adamantium helm, royal guard pauldrons and gauntlets, lord's mail cuirass, everything else ice armor) then it provides a good protection with relatively low weight weight. However, when you get to the late-game, you can't bet a suit of enchanted daedric with enchated clothing underneath, as you can carry several times more than what you could with a suit of enchanted glass. As for weapons, again it depends on skills. If you have a high enchant skill, ebony staffs make for powerful enchanted weapons. Alternatively, you could use ebony scimatars, Excellent weapons with high enchant capacity. But if you aren't a good enchanter then it comes down to your own skill and playing prefrences. So if you want the best, level your enchant, heavy armor and longblade. Go to UESPWiki for details on finding these things. Oh, and hire a few mercenaries and dogs to carry loot.