Favourite system is on the PS3 so I can't see it not being on the 360. Basically you 'favourite' weapons, armours and spells, then mid battle one button brings up them in a selection menu and you can swap and mix stuff around really quickly. It's fantastic.
I've killed 2 dragons so far, so so so fun. I'm a High Elf mage that whores Bows to kill things I'm too scared to attack head on
On my way to Winterhold to learn the arcane arts... I keep exploring and getting sidetracked from my original sidetrack though. The story will take ages to get back to