infornography42 :
I don't think anything but guards will respawn in Oblivion. Well, whatever you do, have fun.
Oh, I also didn't think so. However, I started to notice something strange. You see, whenever I visit a new town, I also make sure I take down all the guards if possible (and at times accidently chopped some of the town people who attacked me side by side with the guards ... sad to say, town people don't seem to respawn). And every a couple of days or so, I would face another group of guards. Some of them I can only knock them unconcious and have to face them again, again, and again. In every town I have visited, there were corpses of naked men (and women I supposed) piling up - like 20 or 30 of them on one spot. It is actually quite a gruesome scene ... I mean ... why don't all these bodies despawn?! So, to cut a long story short, I think the guards do respawn.
Anyway, thanks! I am certainly having lots of fun! Another headache right now is that the towns don't seem to welcome murderers living in their neighborhoods. Hence, it seems no one wants to sell me a place to live. What am I to do with all the money I raised by selling gears from the guards?!
Oh well ...