Conceiving with low sperm morphology. What are the odds?

Possible. Although normal sperm morphology is important in conceiving, a low value may be compensated by higher sperm counts and increased motility. It does take 100's of millions of normal sperm to "get the job" done, you may benefit by concentrating the sample and considering doing intrauterine insemination or iui. Make sure the rest of your testing is normal. Good luck.