It works very well except for one glaring flaw.. only 2 hotkeys (left, right d-pad).
If it wasn't for that then I'd use it over M&K.

Wouldn't know. If I intended to use a 360 controller, i would have bought it for my 360.

The game works great with a ps3 controller. By modding the control map text file, you can customize the controls any way you like, including giving yourself access to all 8 hotkeys.

Don't have a controler here; only used K/M since I bought it. It's a VERY clunky way to play. Going through the menues can be tedius sometimes. Often you click on things, and nothing happens, or, something happens you don't want to. You can find your self accedently stealing something because the mouse accuarcy is so bad. Accidently selling or using something too. The rate of turning also changes depending if your inside or out; simply facing a different direction can change how the mouse sensitiviy works. The hokeys are awful, in that, they only save things to ONE hand; not both. So if you use them, you will often see things end up in the opposite hand they started in, or switch out something you wanted to keep in your hand. Unless you use bows or 2H weapons, it can be a nightmare in the heat of battle. . .

why would i play a console game with mouse and keyboard ? this game is meant to be played with a gamepad like every other console port, so yeah it works VERY well with the 360 pad

Controller feels better in this game than the keyboard mouse. I normally don't like using the controller for these kind of games but in this one the keyboard and mouse felt so much worse than the controller.

I use the controller, to me its alot easier and more responsive then the K/M

I personally use a controller and it's pretty smooth. It's nice to lean back in a comfortable chair and play.