Yep, that's the one.
I'm playing a Breton mage/thief combo; I always find myself naturally playing a thief in these types of games (why ignore all that loot when it's there and you aren't stealing from anyone real?) and I always wanted to do a good mage character in Morrowind. So I've got a fun combination of decent magic, improving archery (with a little blade to back it up), and improving security/sneak skills going on right now.
Finally left the city and headed west towards Chorral for the next part of the quest. Stopped off at a couple of infested forts and cleared those out, beat down a highway bandit that tried to get the jump on me by hiding in the bushes, and I'm ready to talk to Jafar about this whole Amulet of Kings business now. Yes, I know that's not his real name.
