Its NE of Suran, half way btw Suran and the Sea, Its in a area which is a maze of roads, keep searching you'll eventually find it ....( this info from Iaks map, which he has still only explored 50% of ... massive game!)
It's got a map of all of the locations in Morrowind, so if you get bored of traipsing around and no one will tell you where something is it's quite useful. I haven't been able to log onto the site today though.