what is this about height affecting how much damage they deal. i have only heard about it here so some one should just tell me whats going on.

The scale of the races slightly affects melee damage, speed, and jump height. I've also heard that your races 'size' (muscle mass) affects stagger, knockdowns, and getting toss around.

So, with that formula, Bosmer deal the least base melee damage, and move slower, while Altmer move faster and do more melee damage. However, Altmer have the lowest 'size' so they get smacked around easily in combat. Orcs and Nords are the best melee fighters because they have the highest 'size', and the 3rd and 2nd highest scales, respectively.

thats funny because i have a bosmer melee

Can anybody confirm this?

I havent noted a difference with any of my characters.

Honestly, I wouldn't worry about it too much. People get really into the whole race thing, but I've found, across multiple TES games, that the effect of those differences is pretty minor, and mostly only makes any difference at all in the early stages of the game. Once you get enough skill/perks/stats(in previous TES games), it hardly matters, because the skill, perks/stats, and equipment totally dominate the damage, stagger, etc.

Since the editor is not out yet, it is difficult to determine everything that effects what happens in this game. I doubt the differences are much to worry about and your character's skills and equipment can probably overcome any slight deficiencies or differences.

I for one think it is a good idea. No way should a Lithe Bosmer be as effective in melee combat as a Burly Nord, all else being equal. Gives more variety when choosing a race.