I don't know what the deal is, maybe it's just a problem with the Xbox version, or this is totally messed up, but these guards are WORTHLESS. I have about a 5% chance of them actually attacking the things that attack me. I was in the Fel Ahrun area, some bandits come and attack me, so I run back to town. I find a guard and wait.. and wait. So, he does nothing, and I decide to take action. I finally kill one of the bandits, and what does the guard do? ATTACK ME. How useful..

maybe u should see if these bandits really are bandits. dont attack them first. some bandits act friendly. if u talk to them they will warn u about bandits and then attack you, but that is the PC version

unfortunately that is true, If bandits attack you, the guard don't do anything. You have to kill the bandit yourself.

If a guar/cliff racer/rat attack you, then the guard will attack the creature.