The specific details about the scripting language haven't been announced, but they are not using the same scripting language as Oblivion, and have built a completely new language for Skyrim (More on scripting in Skyrim). Supposedly the language is more extensive than the previous one and may be feature complete enough to not require extenders, but that remains to be seen once it has been officially released.
The results from the Skyrim Script Extender project indicate that the old scripting language is still there (see: full command list, including references to VATS and the Pipboy), but also that there's a second, VM-based scripting language called "Papyrus" included. To quote ianpatt from the Skyrim mod forums:
Time to start turning this in to the "Skyrim Internal Technical
Research Discussion" thread. This time around, it looks like we have
two totally different scripting engines in the game. One is the
classic system used in the previous games, it looks almost exactly the
same from a very quick lookthrough. Command dump coming shortlyish.
The new one is much more interesting and appears to be called Papyrus
or SkyrimVM. We'll probably need to wait for the editor to be released
to get any idea about the syntax as the original source code for
scripts doesn't appear to be in the .esm (unless they're compressed).
However, here's a quick feature rundown from what I can tell. Please
take things with a grain of salt for now, this is just a first look.
- core variable types are float, int, string, and bool
- arrays of the above are supported natively
- scripts are interpreted as a list of simpler yet much more powerful set of opcodes
- if the conditional branch opcodes support negative offsets then loops are trivial to implement (and probably have been)
- the new system is object-oriented - all scripts are class instances (UnrealScript influence here)
- compiled scripts are stored as separate files, unpack Misc.bsa and look in the scripts folder
- classes support inheritance, and there appear to be vm-world classes matching the internal form types