Morpheus (besides being the character in The Matrix Movie played by [SIZE=-1]Laurence Fishburne[/SIZE]) was one of the mp3 file search softwares similar to Kazaa and Napster before it turned into something like iTunes. Many web pages are claiming that it contains spyware. However, I have never used it and do not know this to be a fact.
The morpheus I know is a very popular software that allows you to share files with millions of other people who use it. Some file sharing clients may have spywares/adwares etc but morpheus's official website claims they are free of these.