Firstly here is the demo thanks to Feverwolf 4,

http://www.youtube.com/watch?v=K9hJMxw126A
0:11 and 3:17 show the short draw distances.

This demo is being played on the Xbox so naturally the PC version will take it up a few notches but one thing im concerned about is the draw distance. In the way of visuals it was one of Oblivions biggest weaknesses and I would hate to see the same problem still around for Skyrim. Please give the option to crank up the draw distances by large amounts. Mods will probably take care of it, once again, but it would be great for it to be a built in option.