This is a new island city made almost entirely of new meshes will mostly be inhabited by Altmer although there are other races present on the island. They'll have their own look though, I don't plan on copying the vanilla game Altmer at all. A new shop or two, a player home, a new Temple called the Tower of Athaerc and his Sentinels will be the ruling class. The isle is completely surrounded by sea storms, although Athaerc's presence prevents the tides and storms from actually touching and destroying the isle itself. I'm not experienced in quests for Oblivion but I'm not going to be lazy and will figure out how to do it eventually. So far I have 90% of the exterior world completed (still working on the wonky LOD procedure) and am working on new weapons for the guards as I type this update.
Exteriors
http://i34.photobucket.com/albums/d137/lochnarus/ScreenShot3.jpg
http://i34.photobucket.com/albums/d137/lochnarus/ScreenShot2-3.jpg
http://i34.photobucket.com/albums/d137/lochnarus/ScreenShot4.jpg
http://i34.photobucket.com/albums/d137/lochnarus/lochseavillage.jpg
July 17 Update:
Exteriors
http://i34.photobucket.com/albums/d137/lochnarus/ScreenShot7.jpg
http://i34.photobucket.com/albums/d137/lochnarus/ScreenShot4-1.jpg
The Sentinels of Athaerc (the guards)
http://i34.photobucket.com/albums/d137/lochnarus/ScreenShot3-1.jpg
http://i34.photobucket.com/albums/d137/lochnarus/SentinelArmor_wip.jpg
More armor variant pics:
http://i34.photobucket.com/albums/d137/lochnarus/Athaerc.jpg
http://i34.photobucket.com/albums/d137/lochnarus/Athaerc2.jpg