I know they are confirmed but will the AI be any better than other games such as oblivions (which was lousy).

They are confirmed?
Where?
Also, is there any word on pipes?

Edit:
Ignore the stuff above.
I thought it said 'cigarettes' instead of 'critters'.
It happens since I'm dyslexic. :ermm:

They black dog/wolf in the trailer seemed to have more advanced AI as it didn't just run straight at you.

How was oblivions AI lousy? I thought it was quite good in the time they had with game. Like anything things generally improve over time. I do wish people would stop slating oblivion though. It wasn't perfect and had faults,but was a great game in my eyes....No game is perfect. We'll see how the AI is in skyrim,but it sounds better. I believe they needed more time to perfect it,or get it working better....but it was still ok in oblivion.

True but that could just be a coincidence or a minor pathing hiccup. I would hope so. We do know they have realistic AI like a wolf will hunt in packs and spend a lot of time at it's den and stuff like that.

Coincidence or small glitch... on a staged trailer?

There were quite a few glitches and lack of polish on the trailer. There was a thread on it a while back I'll see what I can dig up on it. The one I noticed was on the part with the staff casting there is a big 'hole' on the player's hand. its at like 1:34