I've heard conflicting information, someone please explain. I know that there will be no set-in-stone class system and we can do what we please, but how do we get abilities and the such?

Everything you need to know is here my friend.

It's a good read.

http://acolytesguild.wordpress.com/2012/10/22/elder-scrolls-online-preview/

Should be able to find good info in two info threads that are stickied at the top of this section.

Basically though, choosing a class simply determines your class specific abilities and from there you are able to use any weapon and armor in the game. Weapons will also come with their own abilities that can be used from your action bar. Think GW2 we have 6 slots and some abilities will be class abilities and some will be weapon abilities. Though how many or how they work is yet unknown.

Okay so I had the jist of it correct, much appreciated, and thank you for the ink.