* hiding in shadows means nobody sees you (neither enemies nor neutral characters). So you can fire an arrow to a guard while being hidden. If nobody saw you nobody knows who killed him;
* all characters are reactive to sounds. They hear footsteps so you will want to get off your mail boots before you sneak into a house. Once inside, if you make noises opening the doors and the chests (some should be noisier than others), the owner may hear you and come to investigate. You can hide behind objects or in the shadows. You can estinguish the lights. You can crouch. If you stay still and hidden the person will quit investigating at some point and you'll be able to continue the mission; they can however lit a torch and find you; sometimes you get caught, sometimes you escape, so you never know what will happen, that's how theft can still remain challenging after you broke into like 200 houses;
* you can climb buildings. You can use ladders. You can use ropes. You can break windows. You can look through windows and see what's inside;
* you can choose to wear a mask when you go on stealing/assassination missions. If you manage to do the steal/crime with your mask on, and run, nobody will know it was you. There is although a chance that the victim will unveil you during the fight, especially if it's a guard;
* you can sneak on animals; animals can sneak on you; npc's can sneak on you; when npc's steal they are being arrested in real time (I witnessed the fence in Bruma stealing in the inn, someone caught him, the other patrons yelled "thief", weapons drawn, and that was it, he sat down and ate like nothing happened);
* you can escape a pursuer, may it be guard, by running faster and hiding as soon as he lost eye contact; guards who see that you are faster than them will try to fetch the nearest horse to chase you;
* the sneaking stance should not be visually hilarious; someone who really wants to pickpocket in broad daylight will want to go unnoticed so will have a normal body position. You can sooner detect thieves by their looking around for guards than a ridiculous position that cries "hey, look at me how sneaky I am, may I steal your bag please?";
* if the ridiculous sneaking stance is in the game though, guards should be reactive to seeing it. If they see you sneaking they'll know you're up to something and will ask you to stop it and will keep an eye on you; people who see you approaching in sneaking stance should go away or even run away from you, so you'll have to pick your victims carefully, possibly distract their attention first so they turn around.