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Run steam in admin. Right click steam, go to properties, Compatibility, then check the box (Run this program as an administrator). Next step is to copy the steam application to the game file.
Local Disk (C:), Program Files (x86), Steam
Now copy the application called (steam)
Next paste (steam) into the Oblivion file.
Local Disk (C:), Program Files (x86), Steam, steamapps, common.
Scroll down to Oblivion. Right click. Paste.
Have FUN!
I think the problem is to do with a memory overflow. But this worked for me.