So when two different races of tamriel have a baby together, are they freakish half-breeds? Or what?
lol just wondering...

Not quite. They inherit their mothers race mostly, although Bretons do have Merrish blood. For the most part, there is no real half-breeds in the TES.

http://www.imperial-library.info/content/morrowind-notes-racial-phylogeny-and-biology

Mongrel children adopt the race of their mothers while taking on a few (mostly superficial) traits of their fathers.

thank you for that =]

Are there any refernces to Argonian's or Khajiit's breeding with the humans or elves?

As in children? No, no references.

As in having "relations"? Well...yes.

lol no question their parts line up (at least we'd hope so) but I was refering to actually having half-breed children.

Perhaps, like transparent moons and banned levitation, this was a (funny-done) coverup for a game mechanic. Ever only a handful of races.

For the life of me, I can't remember where I read it or who said it---
but since the toss-up was "You look like your Momma"
Elderscrolls women can get around, and the hubbies will never know

No, there's no record in any lore/books of any beast races cross-breeding successfully with either humans or elves. There have, however, been cases of elves and humans cross-breeding, (for instance, it was a poorly-kept secret that Barenziah, a dunmer, had a pregnancy by Emperor Tiber I, a Cyrodiili) however, it APPEARS that such cases are rarer than non-cross-breeding.

http://www.imperial-library.info/content/oblivion-vitharn-fall, but from the Shivering Isles. Nothing screams "unreliable" as something from there unfortunately.

In oblivion we learn that http://www.uesp.net/wiki/Oblivion:Agronak_gro-Malog is the spawn of an Orc female and http://www.uesp.net/wiki/Oblivion:Lord_Lovidicus, an Imperial Vampire, in a quest called http://www.uesp.net/wiki/Oblivion:Origin_of_the_Gray_Prince, if any of that helps you ? :confused:

Wasn't there also a half-breed Orc in Morrowind? I think it was in Caldera, but I'm not sure.

Sadly, I can't find anything about it on Google, I guess I should replay Morrowind.