I'd really like to see a mod that makes weapons, such as swords and daggers but in-sheath when dropped. This specially goes for Mehrune's Razor seeing as it's a pretty dull blade but has a kickass sheath to display

Should be relatively simple to do, just time consuming. You would need to copy the scabbard mesh to the _g version of each weapon mesh, assuming it's the same as it was in Oblivion.

Oh this is an awesome idea, I like this idea.

keep in mind by doing that, enemies killed will sometimes have a sheath appear on the weapons flying out of their hand, unless it's still attached to the hand bone.

Would there be a way to choose prior to dropping the item? May need CK function for that maybe. Not to knowledgable I'm afraid.