Ok, I've got my first 2 hours in...
First off, the start is very solid. It reminds me a bit of Daggerfall, where you basically start out in a tough situation and fight your way out. It isn't hard, but it's entertaining. It also does a great job of making your character creation seem very natural. It's a way better start than Morrowind.
Secondly, the game is gorgeous on an Xbox 360. I'm having a few lighting issues, but that could be my TV and settings. It's a bit hard to see rats. I actually think I got attacked by some invisible wolves and rats...they didn't seem visible until I killed them. Not sure what that's all about.
Lastly, the interface is pretty good for a console game, but I'd be ticked off if it was the same on my PC.
The draw distances are not great, but that's not a huge deal to me. You are trading in a ton of detail at close range for some plain-ness in the distance. It really doesn't affect the game in any way.
I'm excited so far.