they do a account/server wide copy when it first launches, normally starting with NA characters. After about a week or so those copied and created characters are deleted and its EUs turn to have their toons copied.. lasts about a week and then delete, recopy NA etc etc.
I suffer from Altitis, and really wish Morrowind came with 1 free character slot (with 2 more purchasable still).
NBs - Ellure Starfire (main, hybrid), Lillah (Mag Heals/DPS), Miraculous Ladydog (Stam, Tank)
Templars - Fustercluckk (Mag, Healer), Alastagiel (Mag, Tank), Hamish Campbell (Stam, DPS)
Sorcs - Guy in a Furry Suit (Stam, DPS), Earl Sinclair (Mag, Tank), Baindis (Mag, Healer)
DKs - Do'Sinner (Stam, DPS), Ron Jeremy (Mag, Heals/DPS), Fladenthor (Mag, Tank)