NoNewTaleToTell: It's the law across Skyrim (including Imperial controlled cities) that Khajiit (associated with caravans) are banned from cities. Argonians are free to live in Windhelm but choose not to due to the Dunmer (Dunmer and Argonians do not get along due to Dunmer doing Dunmer things in the past like enslaving the Argonians, taking their lands/etc/etc). It's confirmed by one of the Argonian dock workers in Windhelm (and in lore books). Also, if you're a Dunmer and you talk to the Dunmer who is being hassled when you first enter Windhelm she'll make a very rude (and completely out of the blue) comment about the Argonians. As far as the gray quarter, at least two elves (an Altmer and a Dunmer) in Windhelm say that the Dunmer more or less choose to live in the gray quarter and that it isn't as bad as the Dunmer there claim.
The reason why some Nords dislike the Dunmer is because they were taken in and given homes (and presumably were given help to start their businesses) after the Red Mountain incident and despite that, the Dunmer still consider themselves better than the Nords. Plus some Nords are actually just mad that the Dunmer won't join their side in the war. Oh, and the Nord that is worried about the Dunmer ends up as Jarl in Windhelm if you choose the Imperials which means he may just be trying to get their support for future need.
....Why the heck do I even know all of this?!
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Ragnarblackmane: Ragnarblackmane: Ok so you two are obviously huge fans of Skyrim, why should someone who loved Morrowind and was slightly unimpressed with Oblivion (despite Sir Patrick Stewart, Sean Bean, and Terrence Stamp all doing voices!) finally get into this game?
Ok, this thingy with replies not showing up if more than one person is included is getting annoying. ah-hem GOG!
because everyone is doing it! See, I loved Oblivion, but I played that first. I
like Skyrim b/c of exploring and screwing around in the game (let's kill everyone or put all the brooms in one house). I have not finished the main quest, though I have about 500+ hrs in game. Also, I like reading all the books and just wrapping myself into the game. However, there were a lot of things that pissed me off about skyrim, but not enough that it kept me from playing. The combat is not hard, the gravity factor in arrows was taken out (grrrr), and the nords are a bunch of buttholes. But there are things I find in game that make me smile like M'aiq, easter eggs, dragonborn (heavy morrowind theme there).
I pretty much do
this