I'm finding the game a bit too easy on the default difficulty, but before I turn it up to higher I wanted to know what exactly is going to change? What should I expect? Enemies that do more damage and have more health, or something like smarter enemies?

A.I. will likely be the same with a boost in strength/health like you said.

Not just me then? I seem to be walking around one hitting Bandits, Skeletons and other things at fairly low levels.

Oh for the days of Morrowind and getting my ass handed to me by Mudcrabs and rats.

I would like to know this. Feels a tad too easy at the moment on normal.

They hit you harder, you hit them less harder, or perhaps they just have more health, or hell even both.

If it's just the standard HP/Damage increase like in most games that's too bad. I'd have preferred to see an enemies with shields stop charging me head on while I'm shooting my arrows and actually start using those shields. But oh well, kind of used to this from Oblivion.

i play between expert/master
Master=OMG they have huge health bars, and hit u more hard...maybe i will stick with it when i, myself, be overpowerd
Expert=still feels like normal for me....but ok..

Looks like it changes nothing more than the health bars. Also, I'm playing the game at master and I still find it too easy.

I started at normal, then switched to expert, and will probably play the rest of the game on master. I've barely noticed a difference between normal and expert, though I did have a tough fight between a level 5 char and 3 witches. Even with a low level character, expert seems too easy.