A youtuber by the name of IOblvionIV posted a video recently saying that werewolves are diffently going to be in the game. They will, most likely be a disease you can get, but that is not 100 percent confirmed yet. NPCs will have this condition, you can see one in the PS3 magazine screenshots. They are described, as a game director, to have yellowish, or whitish eyes, mangled hair/beards, and a nose that has a tip going past the nostrils. Just like the redguard in the PS3 screenshot.
This is a pretty short post, but I know a lot of Elder Scrolls players, including myself were wondering and wanting to know if they, indeed, exist. We do not the if the disease will be catchable when the game is released; if not, it will be most likely downloadable in the form of dlc. One last thing, the look of invected people will be improved in the final product, and please check out IOblvionIV, his channel will teach you a lot about this up- coming epic.