actually, it clearly illustrates that oro's soul's arms were cut; since the 3rd knew of his ability to jumpf rom body to body, the only way to defeat him was to seal his soul; during the fight, it showed oro's soul's arms being cut, nullifying his jutsu use; you can go back and look; in fact, he could switch all the bodies he wants, his soul's arms are still not going to work, because orochimaru is just an etheral being; he just inhabits other's bodies