Wow, that Khajjit looks damned cool at least. But as for the rest... is that supposed to be water or ice in the first one? C'mon, every other game in existence can at least differentiate between the two, and what's with the horrible block hair for the orc? Dreads definitely don't look like that.
That is water and it's reflecting the white from the snow on the rocky ledge to the side of it. It looks a bit odd because this is the 360 version so it doesn't have full reflections or else you would be able to see the ledge in full reflection. However, it would be clear it is water if you were seeing a moving scene and people need to keep that in mind. Also, the hair style on that orc is a tightly bound and rolled hairstyle, which is a real hair style and it looks like that. They are not dreadlocks, dreadlocks will be on Redguards :tongue:
To be more clear, the Orc hair style shown there is an oriental hair style, which is what Orcish society is based on.