As I crossed the bridge out of Riverrun to go to the mountain dungeon for the golden dragon claw, I heard what sounded like a tree full of a massive flock of birds. I have bird flocks like this in real life in my yard or at the supermarket parking lot, where about 100 or more of them land on one tree.
I looked at the pine tree directly to the right as I stepped off the bridge, as the sound of a cloud of birds was coming from this tree. I shoved me face into the branches to get a look at the odd flash of color I saw, expecting perhaps to see hundred of birds. What I saw was a giant raven or crow with rainbow feathers on his wings as well as multiple stacked beaks (wtf?) literally embedded inside the tree that was emitting this sound of hundreds of birds.

Here's me screenshots.

http://img.photobucket.com/albums/v84/evilknick/2011-11-11_00003.jpg

http://img.photobucket.com/albums/v84/evilknick/2011-11-11_00002.jpg

Isn't that just weird?

It seems you've found the way into Oblivion.

I tried smacking the giant rainbow crow with the multiple beaks, but it had no effect.

I found a couple of chickens that had a blue glow/smoke effect around them as if they were under a spell effect. After about 20 seconds the effect disappeared and the chickens fell over dead.
It was weird.

/reanimated chickens?

Funny thing is your right, I found a necromancer with 3 reanimated chickens around him.