Its ok but...

1: you should be able to buy or own or find full armor 2: you should be able to take off armor 3: you should be able to ride or own or steal a horse 4: you should be able to steal, you should be able to kill and non-hostile npc and if the npc is attacked by you you should get bounty and the npc will become hostile if they are a higher or the same level as you, and the should flee if the are a lower level then you, also why you have a bounty the guards will come after you to kill or arrest you ( mostly kill)

Havok__ about Ravensword: The Fallen King, v1.322