in the xbox 360 version of oblivion can you disguise yourself and then swap clothing and not get caught?

Answer 1

Unfortunately, there is no real way to "disguise" yourself. People always seem to know. You aren't going to be mistaken as a member of the town guard if you kill one and take their clothes. The only way to enter something undetected is to use either an invisibility spell or a few stacked chameleon skills.