True, there are dai-katanas in Oblivion. Though they are Akaviri and not Daedric. Which is a real shame as I just loved my Daedric Dai-Katana in Morrowind.

While the normal Dunmer in Oblivion actually are more greyish than blue, Aubret is not full Dunmer. She is of Daedric descent, hence the more blueish colour. (though her face is a bit more blue than the rest of her body - no idea why) It also makes her face a bit more round than normal. She's currently about 1/2 a head taller than normal Dunmer (another Daedric trait - I might make her just a bit taller yet), and her eyes are definitely of Daedric origin as I used the Dremoa eyes for her. What's nice about Oblivion is that you have a lot more control of exactly how your character looks, though I was actually trying to go for a more blueish grey for her. Lighting also does play a part in how the skintones look. Better light, truer colours. I'll probably end up tweaking her a bit more after I get all the patches and such loaded again, though it won't be for face shape, but colouration and hairstyle. Might even see about giving her a set of the small Dremora horns

Aubret next to Uriel Septim and his Blades

Normal Dunmer on left, Aubret on right
And as for Blue colouration on characters,.....

Hildegaard - my blue, butterfly-wiged Xivilai
Xivilai are definitely not normally blue, nor do they normally sport wings of any type - expecially Butteryfly ones)
btw - most of my characters are custom races, some tweaked even further in the CS (great tool), or just tweaked normal races. Great fun to see what one can come up with, though sometimes the results are rather uhm,.... er,.....let's just say they don't always turn out the way we intended them too


Much thanks for the comments from both of you