It all started with an apple.
 
I saw an apple on the table and I took it.  Suddenly someone from behind me screamed: thief!  Thief I am not!  Back in the world of Warcraft, I was used to enter Clara's house just outside Stormwind and took her apple on the table.  What's the big deal?
 
Soon, one guard entered the house wanted to arrest me.  It's just an apple for Uriel Septim's sake.  My immediate response was to resist arrest.  I wanted to rationalize with the guard that I am no thief.  Guess what?  He drew his sword and he intended to hack me to death!  Surrender my life I shall not.  Soon we got into a fight, blood splashed everywhere, and I killed a guard - with remorse.
 
I fumed in anger and left the house (with the apple).  Another guard passed by and demanded me a fine.  Com'on?!  We fought, he died, and I realized that everywhere I go, guards come after me.  I hacked so many guards that the bounty on my head is 70,000 gold.  I am just a level 4 lowbie.  How on earth do I have that much gold to pay the bounty?!  Besides, it was just an apple!
 
Silly.
 
My friend told me to start over but I love my orc warrior.  I still think that I can be the one who save the world of Oblivion - despite the fact that everyone including children and women want to kill me at sight.
 
So, please tell me, am I screwed in the world of Oblivion?
 
PS. On a side note, I am happy that Brotherhood of Darkness is willing to take me in as a new family member.  It is good to know that even in this cold cold world of Oblivion, there is love.
 
PS. I have just started playing Oblivion.  What a weird game!

Oh man, that is too rich.

You mug. Just go to a guard and go to jail for a bit. you'll lose a few stats, and all your money, but you'll be ok after that.
 

LOL
 
It was a cold quiet night in the city, I was sneaking from alley to alley between guard patrols, to arrive at my destination, this old man's house.  Blast!  The door is locked!  But I have lockpicks and start to carefully break the lock, I failed, and suddenly a patrol!
 
Stop you thief!  The guard exclaims.
 
But I am no thief, I am an assassin!  Trained in the deadly arts, but who's this?  My friend the captain of the guard!
 
Let me take care of that fine for you, he says, with great joy, he makes his master happy.
 
Anyone else get that now, what's his name will pay the fine lol.

You could also join the thieves 'guild' and perhaps pay only 35000.
 
On second thoughts, just go to jail.

Sometimes your security stat goes up in jail. But equally well sometimes other stats decrease but you evidently can't afford that fine, Money is a bit strange, I've got a save after The Shivering Isles with around 120+ hours of gameplay and I haven't got that much money, around 270,000 because none of the shop keepers have more than around 1600 gp. I haven't got 100 in mercantile tho so maybe that would allow me to get more money.

nice little story but a level 4 defeating one guard, uhm...... no.  maybe a level 20  with good armour to take on a few guards if you are lucky level 30 would be better.

nice little story but a level 4 defeating one guard, uhm...... no.  maybe a level 20  with good armour to take on a few guards if you are lucky level 30 would be better.

Umm... My level one was popping guards like it was a zombie apocalypse.... Maybe you just suck at the combat?
 
Honestly, it might be fun to play through the game as an outcast, but the plot will be forever lost to you.  There are several points where the people who you must talk to are friends with the people who want to kill you and you won't have an option to talk with them alone.
 
Either go to jail for a bit, or explore the world as an outcast outlaw.  Either way, have fun.

 
I really don't want to go to jail.  I may have killed a few guards by mistakes but unless they manage to bring me down, I am going to resist jail all the way!
 
I wonder if I can still finish the main quest with all that I've done so far.

 
Oh that reminds me.  Last night I was trying to find out the Dark Brotherhood's hideout.  The quest said: go basement.  So I entered into a chapel, found some locked doors that lead to the basement.  I picked the lock and entered and ...
 
... Gosh, someone was inside calling me trepassing!  Hey, I was just lost!  She hit me with all the magic, and someone else too.  I killed them all.  Sigh, they were the magic trainers.  Now, I can't even train on my magic.
 
What a game ...

 
35,000 gold is still too much!  By the time I accumlate that much gold, I would have killed so many guards and town people that the bounty on my head is going to be way more.
 
I don't want to go to jail.  Really.  I want to see if I can still complete the main quest.

 
270,000 gold sounds like a lot to me!
 
I think I have about 4,000 gold now after selling off the armors of that guard that don't seem to be in short supply.

 
I am actually not very good in these sort of games so I set the difficulty level to low.  I have to admit it is pretty fun to have a bunch of guards and town people hacking you.  Just keep healing!

LOL, Dark Brotherhood ain't in a chapel, I can't remember which town, ugh been a while, but it's a semi-abandonned building, go in the front, go downstairs and find some really weird looking door that talks to you.
 
This is the place
http://www.uesp.net/w/images/Dark_ [...] _Shack.JPG
 
In Cheydinhal.
 
I think I found the most enjoyment in the brotherhood than any other, you'll get a few laughs (funny ways to kill ppl, like you'd see in cartoons lol).

I think you'll have TROUBLE completing the main quest as an outlaw.
Everytime you go to a town, the guards will attack you.
Just go to jail. It doesn't matter. A couple of your stats go down, but if you're only level 4 it doesn't matter.
If you don't want to lose your character, just load from an earlier save.
 
!!!!!!!!!!!!!!!!
Really quite basic.

That is one main aspect of Oblivion that is better the Morrowind, it is harder to pemanently mess up the quests, in Morrowind I had to reload or restart a few games because I could not finish a quest, because I had killed an NPC who was vitle to the story line or I had found and sold an one of a kind item that I needed to bring to someone but I no longer knew who I sold it to (I spend hours checking the different shops I had been to, looking for a spacific Item after I realised that I had already looted the cave were it was hidden)

 
ye right, at level one there is no way you could do enough damage to a guard to take him out any time soon and blocking is useless since they woill just knock you off your feet and you'll be dead in no time, i call BS on that.  at that level taking out one guard would be pretty impossible no matter how good at combat you are., no shield or armour can protect you and dodging with the starting speed level ain't a good idea.

You know, there are different difficulty levels right?
 
I played on easy for the fun of it.  You were probably playing on super many hard mode or something.  Seriously, the guards were wusses on easy.