Unlimited Arrows
At the Inn of Ill Omen there will be a man outside practising his archery with steel arrows. If you go in front of him you can pick up his arrows. Don't worry about getting hit by arrows as he will wait until you move out of his way. You can pick up as many arrows as you desire and you will not get into trouble with the guards.
More tricks, tips and cheats for this game are right here - The Elder Scrolls IV: Oblivion cheats
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