anyone know books in morrowind or oblivion that talk about werewolves or maybe stories about famous people who became one or maybe a link that has information on them

Play Bloodmoon. It'll tell you everything you need to know.

http://www.imperial-library.info/dfbooks/b036_lycanthropy.shtml

http://www.imperial-library.info/dfbooks/b036_lycanthropy.shtml
http://www.imperial-library.info/book_daedra/index.shtml#hircine

Don't expect any werewolves vs vampires though. They're just some hunting dogs.

Hunting dogs who like to be alone, unless their master calls them.

Not necessarily, if Daggerfall is still relevant. They banded together every now and then in dungeons from what I saw.