As for lore, I recommend getting the lore through the game. Watch the starting movie, read the occasional in-game book. You won't be an elder scrolls lore expert, but you'll know enough to immerse yourself in the game. I've never worried too much about lore, myself. The unofficial elderscrolls pages (www.uesp.net) has a lore section, but I think it's quite a bit of reading.
And even though he doesn't support it anymore, I would recommend that Duke Patrick melee combat mod...especially since deadly reflex has become more complicated to install. If you aren't a sword and board type, though, his mod might make you a little too squishy. The combat is much more realistic, making combat more difficult to win but more rewarding (although, the occasional sneaky wolf killing you from behind can be very annoying). You won't get any decapitations with Duke Patrick's combat, though.