To view one of the new prototype ships that utilize cannons: http://skyrim.nexusmods.com/Images/105246
To view a couple of the new protoype cannons: http://skyrim.nexusmods.com/Images/105247

Ship teaser for Tytanis 1.03 (about 5% of the new content to be released):

Sail your own ship along trade lanes with ports that have fluctuating prices due to demand, or the open-sea!
Cannons with animations (with cannon upgrades and even magicka ones!)
Purchase a ship, hire crew with different bonuses, outfit your ship cosmetically and for more functionality on the sea-faring battlefield.
Choose role of a pirate and attack/loot trade ships (or capture!) or fly your faction\\\'s flag and hunt down pirates or hostile factions
Ship boarding, ramming, and destruction
Encounter style battle system
Shipwright Skill Tree
Captain Skill Tree
Eye-candy animations for battles
Highest rank allows you to command a fleet and send them on missions
And some more

Sounds intense!

Will the ship have collision with the world? Or are we going to be sailing through Whiterun?

Yes, it has detection for water. If you run onto ground, it will be stuck for a week in-game unless you hire "tuggers".