I haven't checked up on this game in a few weeks so I've probably missed out on quite a bit o: Will it be similar to oblivion or is it going to be a lot more detailed ,such as muscle tone, body scars etc, or will it pertain completely to your face only?

Also does the extra claw damage thing for Khajiits make them the strongest unarmed characters? I'm not really the type of person to specialize in unarmed but it seems really cool

Since I can't link to the video, I'll just tell you.

You can control weight, build, (height?) scars, tone, hair, beard, everything face, war paint, eyes (you can make the eyes blind), you can give Argonians feathers. There is a lot more than that though... just search YouTube. Someone caught a guy making his character at a demo on camera.

No height slider. Body slider does not allow fat characters, more mass always means more muscled.

The highest Mass setting looks like "American Buff" though. Which is buff, but still kind of oafish and fat. It's all that Steak and Eggs.

mostly oblivion like with a few additives...

Yeah what everyone else said, a lot more you can do to edit your beloved character. I myself I will take about a half a hour just to customize my character, unless I'm to hyped up to start the game right away.