Well, I can't answer all your questions (as I'm not the gm) but the Mages Guild was disbanded after the Oblivion Crisis and split off into the Synod and the College of Whispers, respectively. I don't think we're limited on equipment since this is taking place in all the realms, since the Thalmor are taking over Valenwood, Elseweyr, and allying with Hammerfell.