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The Elder Scrolls V: Skyrim Hints
How does werewolf form work?
1 of 7: You'll be a powerful dual-wielder (of claws) who can move very fast and quickly shred most opponents. You'll also have quite a bit more health and stamina than you do in non-wolf form.
2 of 7: However, your health won't regenerate, and your wolf form will only last for a short time. That's bad, since you can only transform once a day, or twice a day if you get a special ring from the "Ill Met By Moonlight" Daedric quest.
3 of 7: You can prolong your wolfishness and regain a bit of lost health by feeding on dead bodies, including those of people you've just killed.
4 of 7: The main disadvantage of being in wolf form is that you can't use any of your equipment, including armor, weapons, spells, and potions. You also can't pick up loose items or loot enemies you kill. All of that will have to wait until you change back into your regular form.
5 of 7: In wolf form, you can use the Shout key to emit a wolfish howl. That won't do much until you finish the Companions' main-line quest series and do Aela's "Totems of Hircine" Randomized Quest, after which your howl can have one of three beneficial effects.
6 of 7: You're totally immune to all diseases no matter what form you're in. However, you're also immune to bed-rest bonuses, so you can forget about ever using them to boost skill practice.
7 of 7: Unless someone sees you transform, any crimes you commit in populated areas while in wolf form won't be counted against you, meaning you won't get a bounty for them. Since you can't steal items in wolf form, the only crimes you can commit will be assault and murder.