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Are any items in this game leveled such as they did in oblivion? And do NPC's level up with you?

I love the difficulty, but will frost trolls and bears always be superior to a lvl 50 mage? Just wondering.

At this point we're still trying to figure out the leveling system, but most likely the leveling in Skyrim is a mix of Morrowind's and Oblivion's.

From what I've read, Dungeon levels are set when you first enter them, and will remain at that level when you return later. But, it isn't clear if level-locking applies just to Dungeon inhabitants, random loot, or both.

Akiraka, you just made my day.

Thanks for info. I was playing today and I found a Dwarven shield at level 8 which I thought was pretty cool. It literally was laying on a trap like some sort of prank. I went and nabbed it thinking it was my lucky day and then "WHAM" my imperial gets knocked hard by a log from the ceiling. Gave me a good laugh .

I believe the leveling system is there, but hidden pretty well. Bandit chiefs which took a million hits at level 4 now go down with ease at level 15. (I know I'm slow at leveling, first play through is more of an exploring/treasure hunter/merchant character for obvious reasons). Also good to hear that pity bandits aren't getting armor, more notably Daedric that is extremely rare (cough cough Morrowind. too rare!) like they found it in a town they marauded .

Some somber confirmations...

Placed items are leveled as well. I took my level 11 mage to where I found the Elven bow, it was an Enchanted Imperial Bow instead.

Found a Glass Claymore stuck in a stone in the Barrows East of Ivarstead at level 27. Just went there as well with the level 11, Orcish Claymore instead :/

I really don't care as long as it isn't as prevalent as it was in Oblivion.