I'm no expert on how the real time game world works in Skyrim. (Or in any TES game..or any open world game at that.) Let's say you are in any given area..Does this mean that there are entity's out of your view that are actually roaming around? Or do they randomly generate when you are in a certain distance? I'm going to guess that they spawn when you get somewhat close...But, I'm just not sure how it works. I know I've come across things that have been killed without seeing anything that could have attacked them in the near area..So I'm wondering how creature spawn in the world basically. If there is in fact creatures that roam around and do things outside of your sight, I wonder if someone could make a mod that's kinda like a surveillance camera you can set down and check up on through some sort of spell or something. I think it would be neat to check up on interesting places to see what's lurking about. What do you all think?

Radiant AI FTW!
I you want to see what's happening in an area you'll have to go there and see for yourself.

I no basically nothing on this matter, and I'm sure there are many here, with it's strong modding community, that could give you a better reply.

But I'm 90% sure the game nor the console is powerful enough to render anything at any given time outside of your particuolar area,

However, "randomly generated" isn't an accurate term. I'm sure they have a solid method.

I think a good example of what I'm saying would be something like this...Lets say I decide to make some random tower that's not in a city my home. (Like the one in the demo) I want to have a mod that would let me place a marker spell down on the inside of the tower so when I'm traveling back to it I can cast a spell before I return to see if any hostile enemies have ventured back into it. You know what I mean?

I think the game engine keeps track of where every npc is and creature in the game world is at any one time, and what they are doing etc. It's a lot of info, but it's all just numbers, because nothing has to be put on screen besides what your doing/seeing. Could be wrong though.

NPC's are kept track of, but I'm not so sure creatures are. At least they weren't in Oblivion, they may have changed that for Skyrim.