We've seen in the demo movies that the citizens of Tamriel have schedules and being in the right place at the right time can open up new quests for the player. My question is, are there any mutually exclusive quests because of temporal differences, or will the player eventually be able to "see" everything given enough persistence?

We tend not to lock off content from the player like that and, given enough time, you can pretty much see and do just about everything in the game. That’s not to say it won’t take quite a bit of time and effort to do so. It’s a very, very big game.​

How will Oblivion's story unfold? In Morrowind, your dialog choices usually amounted to "Yes", "No", and "Yes, but it'll cost you". Will Oblivion's interactions be more robust?

We’ve changed it quite a bit from the way it worked in Morrowind. So it’s much more of a dialog tree system and less one that centers around only picking topics out of a list. How the story unfolds is up to you and many times we give you more than one path through a conversation and it’s up to you to decide how it proceeds.​