Nord, dual wield with heavy armor for my first go around.
Magic is awesome in this game, as is archery, but with the shouts you learn as any race/class (you find out more about this early on in the main story quest) you can still use some pretty awesome spells even as full melee.
With that said, this game is so flexible.. I mean, you can use magic in one hand, sword in the other or whatever variation, so can mix it up a lot.
For those that didn't see the tooltip, Y on Xbox allows you to favorite items and spells, and when you push up on the D pad, it allows you to switch between favorites for fast item/spell management. I'm mentioning this because I saw someone online who didn't know this for like 10 hours into the game.
Also, I stated this in the other gaming thread, but the Xbox version has a glitch where if you install the game to your hard drive, the textures will downscale and not scale back up, making some of the graphics/textures look ugly and muddy. To avoid this, run the game from the disk and don't install it (and uninstall it if you did).
Just been playing on my xbox with the game installed and it looks glorious. Maybe its been fixed already?