I have a very hard time RPing. I don't know why, I just can't forget that I'm playing a game and completely immerse myself into the game like all of you do. I've tried endless times, and I just can't. Is there a reason for this or am I just RP-incompatible?

Roleplaying can be harder for some people. In one way it′s sort of like having a talent for something, like sports. Either you find it easy or you find it hard, but anyone can do it.
Imagine yourself in your character′s shoes, what would he think/do in a given situation and what are his likings when it comes to fighting or collecting things? Or try this approach; imagine you′re traveling through Cyrodiil with a friend, the friend of course being your character. What do you come up with together? Where do you want to be and what do you want to accomplish in the sense of roleplaying? Maybe collect books to open up a library, or perhaps 100 Welkynd Stones and distribute them to all local Mages Guild halls as a service to new members?

Read the Roleplaying thread in my signature and the previous one. Maybe you′ll find some useful stuff there. Remember, when dealing with RP only your imagination sets the limits

It all comes down to imagination, reception, and dedication. Were you imaginative as a child? Do you still retain any of this imagination? That's the main part of what roleplaying is. Some people are just not very imaginative.

The reception part is mostly just being aware of little things, things that show up outside of your head. I gain little insights into what my characters are as I move them thru Cyrodiil, or sometimes I'll be at work, start daydreaming about one of my characters and have one of those "aha!" moments. Stuff falls into place, stuff about who my characters actually are. For me, it's always a 2-way street. It's not just my head making (imagining) things, it's also other energies I'm subconsciously tapping into at various points of the game/my life.

Assuming you're imaginative and open to stuff, you'll finally need to have the dedication to actually make your character follow a certain path. Let's say you're seeing your character likes fruit, and only fruit. Are you gonna stick with this as the game goes on? Are you gonna have him or her actually eat fruit all the time? Or will you get lazy, eating boar's meat if it's around, or not eating at all for days? The roleplayer is gonna have the dedication to see things thru, rather than just blowing off such things.

Hope this makes sense...

Role-playing can take on many forms. It can be very detailed or it can be very simple or somewhere in between.

Very detailed could involve various costumes, making sure your character eats and sleeps each day, creating and developing an ultra-detailed backstory for your character, etc.

Very simple RP could be as simple as, for example, playing a "good" character who would never do the DB quests or even regular quests that seem somewhat sketchy in motive.

Well, thank you all. I wrote down a character sheet for my guy, hopefully that will help. He's an Orcish adventurer named Garkul gro-Drak, he's level 18. He really doesn't like Necromancers. His greatest fear is dying at the hands of one and become an undead slave. (Although, I do plan to turn him Undead with the help of http://www.tesnexus.com/downloads/file.php?id=38198 mod. And no, I don't play WoW. I just think the mod makes for some very neat races.) He lives in Bruma, and he is a very private person, with few friends. His reason for his hate of Necromancers stems from the fact, that when he was training to become a warrior in Orsinium, he and his best friend Yukasum gro-Karak were exploring a cavern, only to find it was inhabited by a Necromancer named Raelynn. They fought valiantly, but Yukasum was killed, and Garkul was permanently scarred. Raelynn fled Orsinium, but Garkul remained and finished his training. That experience made him cold and distant towards anyone. Everytime he sees a Necromancer, he crushes them with extreme prejudice. He doesn't really worship the Nine, or a certain Daedra prince, and he likes venison, corn, and cheese very much.

Thats a good backstory.

I often find myself totally immersed when playing and becoming very connected with my characters to the extent where I come up with all sorts of backstories, fanfic ideas that sadly never make it to paper. Although I'm playing with an idea about a Nord Knight who declares war on a new sect of Necromancers, set about 50 years after Oblivion.

Its just such a pity that Oblivion, or Skyrim isn't an MMO or at least Online Co-op, would make for some awesome RP sessions