1.) To everyone saying you need to have a class-less system to really get the world right- do you? Yes, in the video games, the Heroes of TES series are Jack-of-All-Trades, Knight-Ninja-Wizards; however I propose you consider the everyday warriors and spell-casters of Nirn for a second. Think of the Companions and the College of Winterhold. Think back to the Ashlands of Vvardenfell- what about the honor warriors of House Redoran or the scheming Telvani mages?
My point here is that in the world of Nirn everyone else, more or less, is not some sort of weird-chimera of skills the PCs tend to be. For me including the class-less system of the video game is like including the quick save feature: pointless. The universe of the Elder Scrolls is so well loved for its mythos, pathos, and structure, and are the main reasons I see people wanting to Pathfinder there. Holding onto video game mechanics without considering their integrity to the setting causes more harm than good I feel- heck, I once had to play a game of All Flesh Must Be Eaten set in Raccoon City. All six of us had 4 inventory slots each. That's it.
Anyway, my point is that using classes in a Nirn setting, as they are, is fine and fits with the world if not the games. If you need to change something I'd either ban the divine magic classes or work them into arcane hybrid classes- all magic comes from the same source on Nirn and it has more in common with arcane then any other magic type.
2.) cranewings, it seems like you are set with the setting and I say more power to you for that; have fun. However, when you get the chance, you might want to look into the 3rd party book Spheres of Power. It was made to offer up a whole new take on magic for Pathfinder and imitating Nirn's magic was one of its goals, more or less.
3.) @Bjorn Splinter-Spear: Teleporting your Sand-Point players to Nirn sounds awesome Bjorn but on dwarves- remember that beyond a love of digging deep ES Dwarves (aka the Dwemer) and Goloraion dwarves are anklysaurs to armidillos.
-Dwemer are of average height, compared to humans. Dwarves are, well, dwarfed next to us.
-Dwemer deny the gods authority, going as so far as to make a mech capable of tearing reality asunder just so they can be rid of divine influence. The dwarves meanwhile revere their pantheon as not only their creators but THE creators.
-Dwemer professed the power of science, unconditional. Dwarves profess the power of their gods, while considering honor, family, and coin.
-Dwemer were a!$%~$#s, ready to destroy creation on the basis that the world was a dream, and that they could not truly understand it until they woke up (Read: tear reality apart). Dwarves are stubborn and xenophobic, but generally noble and ready to fight all things vile at the drop of a hat.
-Dwemer were elves. Dwarves are not-elves (seriously, as in dwarves are like the antithesis to the elves, their opposites).