The animation is great for your main char, at least the female lead. I didn't try male, so I cannot comment on that one. Movement is also very good. Your character is very acrobatic and can jump quite high and far. Basically you move around the screen as you like.
If you are in position to hit someone - then you will, unless they evade, but if you're facing the wrong way then you won't. Pretty simple. How much damage you dish out is determined by all the rpg stats and skills.
There is a degree of lock on involved, especially with spells and archery. Some spells will fly straight at a target and miss if the target moves. Some spells will home in on a target.
You cannot fire at an arbitrary spot on the ground. If you shoot arrows, with no target locked on, the arrows are simply shot straight ahead. Most damage spells need a target to activate at all.
I don't remember Oblivion fondly at all. I quit after I found out leveling had the opposite effect - namely making me weaker rather than stronger. What a shitty game.
I don't know if there is a demo available, otherwise check out some gameplay videos. Having people describe what the game is like is almost a disservice, when the best way of experiencing it is trying yourself. Keep in mind the combat can be played in several ways, from cautious and afar to right in the middle of things.
