Are you gonna be evil?, Question about bounties & reputation. Options

[Dances With Pandas]

Does anyone know how the reputation system works in Oblivion?

I read somewhere that evil acts (like joining the DB) have an adverse effect on your character, so are they physical (like in KOTOR) or is it just the way other people speak to you?

[Pieinsky]

I have read that the physical apperence of your character does not change depending on your alighnment. With the exception of when your creating the character. However i believe the reactions you get from people probably do depend no your alighnment. I base this theory on Morrowind. Im happy your charcter PA does not change because of alignment (overall).