Looks like you didn't fully understand the masks-on-mannequin thing but you lucked out that the first combination was the correct one. Nice! (The banners with symbols on the wall show the pattern where the masks go. The pedestals in the sculptor's room (and the Almalexia shrine in the big room) tell you which symbol is connected to which deity. Almalexia in the middle, Sotha Sil to the left, Vivec to the right.)
Fantastic episode. Really enjoyed this one! The Ebony Mace, found in the armoury, is a unique Morrowind one and different to standard Ebony Maces in its design.
Blocking reduces only a percentage of damage. It blocks more as the skill goes up and/or you invest points in the basic (bottom) perk. However, a well timed block bash (when you keep holding the block button and hit the attack button exactly when the opponent is about to strike) will interrupt the attack and stagger the opponent for a short time.
