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Dose spells like Demolise Humanoid/Creatures, Turn Undead, Calm Person actually work in Morrowind?
I've played a sorcerer and try to cast a turn undead spell on an ancient ghost, it doesn't work at all, for 3 times!(Blessed touch, 100 pts)
I've also tried to cast demolise humanoid spell (Demolise humanoid, 20-50pts) on bandits inhabits in their den near the silt strider in Seyda Neen, nothing at all has happened.

Those spells should work, provided the enemies are at the right level range to be affected by the spells and the spells activate successfully.

Are you absolutely sure the spell is activating correctly?

Unlike Oblivion and Skyrim, Morrowind has a spell failure system which means magic isn't guaranteed to work 100% of the time. This is especially true if you have a low skill level in the particular school of magic, a low Willpower attribute or low Fatigue. This from the UESP Morrowind magic page:

"Spells will fail often if your respective skill for that school is low. Trying to cast a last minute Divine Intervention with a Mysticism skill of 5 will take a lot of luck. Consider leveling up your magic skills if you plan on casting successful spells."

and

"Casting spells can fail. The failure rate is influenced by your skill rating in the relevant school of magic, your Willpower, your Luck, and your Fatigue. Instead of the cost of spells, skill level influences the chance of spell failure."

Also, if you are playing on PC, are you using any mods?

To check your chance of casting a certain spell, open the character menu and find the spell you're looking for in the bottom-right box (or whatever your spell menu is). The second number listed to the right of the spell is the percent chance of casting it.

Sorry to revive this post, but I didn't see a satisfactory answer. From what I understand and have personally experienced, the following is true.

Demoralize Humanoid/Creature seem to work by raising the flee statistic. I forget what the exact formula relating fight, flee, and whatnot is but by adding enough to it, the enemy should flee. I personally have had them work but they are not what I would call effective spells. I have a much easier time making things flee by turning myself invisible or jumping really high. Demoralize Humanoid was accidentally misclassed as a mysticism spell though so your illusion level will have no effect on its success.

Turn Undead is supposed to work like Demoralize Creature for undead. Whether it works is up for debate, as I have seen on the UESPwiki in the comments section. I know it did not work in initial releases. Supposedly it was patched but I have never had it work for me. Once again, I have an easier time making undead flee by using the above two strategies.

I love calm person. I made a character once that was supposed to be a barbarian wizard that joined House Telvanni. In my roleplaying (based a bit off the quest to trade with the Zainab) I thought one of her strengths could be the ability to get along with the hostile Barbarian NPCs. A tactic I would use would be to calm the person and then raise disposition up past where they would no longer attack even when it wore off (for a lot of NPCs this is 100 and some it isn't possible). If you don't shmooze them up to a high enough disposition, when calm wears off they will attack again. Calm works just fine. I used a value of 30 for like 10-15 seconds. This would give me plenty of time to calm every one down and then enter conversation with one of them.

Hope this helps.