Pelagiad is a Free, Open Source font based on Magic Cards, the font used in Morrowind. Pelagiad is designed for use in the OpenMW game engine, but can be used for any purpose. Pelagiad is availible under the SIL Open Font License.
Pelagiad comes with the appropiate files required to use it with OpenMW, and to do so simply copy the files "Pelagiad.ttf" and "openmw-font.xml" into the resources/mygui directory of your OpenMW installation.
To use the font as a regular font, simply install the ttf file as you would any other font.
The Pelagiad.sfd file is a FontForge project file and can be ignored unless you mean to modify the font.