So how exactly will it work? and any speculations on multiplayer for console gamers as it can get really lonely on the continent of skyrim.

Highly doubtful of Co-op of any sort in skyrim as Tes: Online is being made but for the first part they've already said they'll be emailing codes. All the questions would lead me to believe players will be choosen on game styles rather than console types. Or just totally at random and the questions were for bethesda to get insight on playstyles the community favours. Say they find many people like to sneak they might be more inclined to add a new sneaking element. (I want those water arrows for torches)

You'll get a code in your email inbox if you've "won", so you'll know about it. You can redeem it on XBL. It will be the finished product, though obviously not devoid of bugs.

NO MULTILAYER- Im pretty sure the things you answered wont have much to do with it and if you win your code is sent to you through your email provided

We have an http://www.gamesas.com/topic/1366657-non-mmo-tes-multiplayerco-op-thread/ for all multiplayer discussion. Please read the opening post before joining the conversation, it has important ground rules.