Why is that, is everything working ok now?
I spent hours trying to diagnosing my problems. Oblivion sure is touchy about its Codecs and Graphic Drivers.
I had to delete my Nero software(because of its codecs), it was trial crap anyway that came with my DVD/CD R/RW optical Drive. After doing that I had to get the beta patch for the FormID bug. Then I had to get a different Graphic card driver. Luckily I found a newer one. Im using 101.02 Nvidia Forceware for WinXP 32Bit. Its working flawlessly. I got it from Tweaks R Us.
Oblivion is also touchy about SLI. At first I was getting 40 fps in the grassy foliage areas, I knew something wasn't right. After a driver reinstall /w drivercleaner in safe mode, I rarely go below 60 fps now.