this is very true. In fact, the 'bended knees' everybody complains about only appeared in Morrowind, not in any other game or even any spin-offs.
Mostly truth. The first khajiit just looked like a human with tatoos. The ones in DF looked exactly like humans, with a tail, and very light, tan fur that covered their entire body except for their neck and head. They also had facial tatoos. Here's a pic of one for example: http://img22.imageshack.us/img22/8113/level14unarmoured.png. But as Proweler pointed out, they bendied them in Redguard. It's only in OB that they removed it.
As for argonians, they've had the most wide changes than any other race. In Arena, they were nothing but grey scaled humans. In DF they were almost like OB's argonians, only completely green, had claws, briasts (no nips), and only red eyes. Here's an example of a DF argonian http://img.photobucket.com/albums/v201/Grikok/MW%20Screen%20Shots/DFArgonianStalk.jpg. In Redguard, the only argonian in that game looked like a humanoid crocodile. And unlike the khajiit, they didn't get bendy till MW.