Most of the characters in the city of Vivic have been telling me that there are many great treasures to be found in the great puzzle canal beneath the palace of Vivic...I did get to the center and figure out the "breath the water" thing but other than that I can find no treasures or anything else interesting. What am I missing? Is there some route through the canal that I haven't found? Thanks for your help.

That's it.

Second most disappointing moment in Morrowind.

That's it, pretty much. I assume you found the shrine? You need to do that once if you're doing the temple's quest to visit all the shrines.

No kiddin! So that is the insiduous and mysterious puzzle canal? Wow, shame on the Morrowind makers to make such a good game with such a lame little "puzzle canal". Oh well, at least I didn't spend too much time trying to find a way into 'the real puzzle canal part' hehe.

*and by the way I did find the shrine part :D

Well, there is "the Shadow Lords armour", which can be found underwater, but i think that's a plugin, not sure anymore though.

Other than that, there's pretty much nothing downthere. Smells like an unfinished quest or something.