Flying numbers
 

Possible to add flying numbers (with colors to signify if it was a certain type of damage)

Yes, i've seen an add-on to do this already. However its not on this site. I found it on some Russian site a little while ago.

Basically if im looking at the image correctly, you can see on the left your players damage, and then on the right is the incoming damage.

That would be Foundry Tactical Combat. It hasn't been released to the general public as of yet. The links above do download a version of it though.

Atropos (link to offsite download removed ~ Cairenn) from Tamriel Foundry is working on it, maybe if we bug him enough he will post a version here.