I have an orc, level 2, didnt even go start the storyline yet. Just have been doing the fighters guild and I don't want my store bought two handed axe anymore. Where can I get a good one?

Sidenote: Axe is spellchecked?

Nowhere really. There aren't many unique 2H blunts about and random loot drops are scaled to your level so what you are seeing is the best you can expect.

You could try Rohssan in the IC or Tun-zeeus in leyawiin. If you have the gold.

Thanks. Same goes with heavy armor I guess?

If you haven't learned it yet you will: virtually every piece of gear available in Oblivion is leveled to the player.

Between all the Fighter's Guild halls there is nearly a full set of steel armor. Killing Umbra at level 1 yields armor that's equal to Orcish in stats.

For blunt weapons....You are kinda out of luck. Best bet is enchanting your own.

You can steal nearly a complete set of steel armour in the imperial city (most are in the market district, look also in hidden chests)

Carmalo Truiand in the NE watchtower also has a 2h silver warhammer on him, I suggest sneaking in when he is asleep and taking it.

Not necessarily. Talk to Jensine about her competitor, follow the questline to its conclusion, and look around carefully.

Edit: Oh, sorry, that's one-handed. Still a good weapon for a low-level blunt user, though.