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As for the thread... I have no idea XD it should work just like that, you put all the OBSE files including Data folder inside the game folder (where Oblivion.exe located) and launch the game through Steam.
I've just checked full vanilla game, deleted whole Oblivion folder within My Documents\My Games, downloaded OBSE, installed OBSE Test Plugin and launched the game. Works fine even with overlay being disabled. I'm on Win7. I'm sure that's something pretty obvious unless there is anything going on with Win10 if you've been using it.
I can run administrator for Steam but how do I run administrator for overlay?
As far as the rest, I've certainly tried it
When you say that your mods "aren't working", exactly what are they doing instead? Are you getting in-game messages telling you that OBSE isn't active, or are they simply not affecting your game at all? Do all of your mods require OBSE? You make it sound like you can't get any mods working at all...
Is an OBSE log file appearing in your game's installation directory?