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If you're using ENB, be sure to run the launcher at least once and let it detect your vid card settings again once you have ENB active.
If anything else fails, rename Oblivion.ini in your My Documents\My Games\Oblivion\ and see if letting the game create a new one (run the launcher first) makes any difference? If it doesn't make any difference, you can delete the newly created one and restore your old original.
EDIT: Also, be sure to check carefully in teh control panel, as there are sometimes TWO entries for the same game (at least, as an AMD user, that happens to me): one that points to the actual executable using the pathname, and other that points to the Steam launcher (using the Steam's appid.) -> Be sure to disable one of them and make the tweaks to the other one that remains active.