Thank you all very much for the responses. I had figured that the first would be near impossible if not impossible.
I'll go ahead and give up the ghost I suppose. I've been tinkering with the idea of creating the Deathknight class from WoW. I found the rune system to be very innovative, and was hoping to bring it into Oblivion.
It would work as such:
There would be a questline, that every few levels (TBD) you would use a spell to speak to the lich king. At that point he would give you new abilities.
-These abilities would use the "blood", "frost", and "unholy" runes placed in your inventory at the beginning of the quest.
--The runes would be consumed when the spells where used giving 10rune power (aka Magicka).
--After a time the runes would be added back to you're inventory.
-The spell system would have very specific rules. You're magicka is stunted and degenerates at 1/sec.
--each of the magick schools would have -100values in the "Deathknight ability" to ensure you could not use them well. (exception is alchemy)
--This would simulate the way runic power worked. As such, there would be spells that would use magicka still in some cases.
-The pressences are already made with as much in common with their WoW counterparts as possible.
-Many of the spell effects are already created, I'm just missing how to implement the system.
My first suspision this would not work was when I realized the "cast" command does not work when using target/touch spells in scripts. My first idea was to use an If function to gather wether the rune was in inventory, and if so to cast the spell from within the script. If not the script would simply cast a spell such as +1magicka regain, (which with its degeneration, was almost completley useless) from within the script.
I'll continue to work on this system, if anyone has any suggestions or if this gets big enough I'll post it in the suggestions/requests forums to see if anyone would like to take up the project or help directly.
(btw I'm not completely new to scripting, but I do have trouble with harder quest scripts. My C programming courses have helped immensley, and I do use OBSE).
Again thank you for the responses