Earlier tonight I was doing some DB assassinations as a Werewolf , after I killed the target a old woman of the town came running up to me with a little pig sticker " iron dagger " and just stared at me...so I roared at her and she exclaimed " OK!! Death is highly overated! " and ran for the hills.
Also have had couriers come up on me while transformed and act like I was perfectly normal. Had this with various other npcs aswell , they just dont care...must have a Werewolf cousin or something.
I was running the plains outside of whiterun and spotted some imperials with a Stormcloak prisoner. Im no fan of the Stormcloaks but I just hate me some Imperials..so I killed and ate them.The prisoner walked up to me and knelt down at the soldier and said " Ah what a waste. Hey you , you shoud join the Stormcloaks" and ran off.
I also ran into some Vigilants out in the plains of Whiterun , I saw them flinging magic at someone like crazy so I ran up and ate them. Turned out they were chasing a Vampire. The Vampire walked up and checked out the dead Vigilants and I guess she didnt see me somehow...but when she did she screamed and ran away.