Elder Scrolls: Oblivion questions

[Grisgra]

Playing on an Xbox 360 ... and yes, I'm a newb.

I'm in the Crumbling Mines, there's clearly a passage in there that I'm supposed to dig through (and there's a pickaxe and shovel on the floor) -- but it's not letting me equip them. How (and can one) use a shovel/pickaxe?

How do I shut off/toggle auto-run on the console?

Where can I get por. hemophilia cured? Thought there'd be some place I could do so for ~free . . . ?