So decided on a khajiit for my no level playthrough. I had heard things about their claw attack...but I'm wondering now. It's doing as much as my imperial sword at level 1. I took out a master vampire at level 1 with a shield, claws and a few potions at adept. Is that right?

Yes it is i believe the khajiit claw skill dose 25 pointa of damage.

yes it is, it means that you play the game right