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1. Copy obse_1_2_416.dll, obse_editor_1_2.dll, obse_steam_loader.dll and the Data folder to your Oblivion directory. This is usually "C:\Program Files\Valve\Steam\SteamApps\common\oblivion".
(Ugh, hopefully NOT in Program Files)
2. Ensure you have enabled the Steam community in-game, or OBSE will fail to load. Go to Steam > Settings > In-Game and check the box marked "Enable Steam Community In-Game".
(It's actually "Enable the Steam Overlay while in game" now, also check that it's marked if you Right-Click Oblivion > Properties > General)
3. Launch Oblivion via Steam or by running Oblivion.exe. OBSE will automatically be run along with Oblivion when launched. To disable this, rename or move obse_steam_loader.dll. You do not need to use obse_loader.exe unless you are running the editor.
In your Oblivion directory is there an obse text file? It's a log file. If it's there what does it say?
Also, if you launch and make a save and exit, are there two saves for that slot in your save game directory: an ess file and an obse co-save file?
OBSE is running and some mods work with it but the mods I actually need like spell dlete are non responsive I tried supreme magicka as a test and it doesn't recognize obse as installed. The more I look it seems like this stuff started happening around 2013 or 2014, like some kind of update to steam or steam oblivion has rendered the mods unusable :(
https://www.youtube.com/watch?v=jGKhdiJYBqo&list=PLE7DlYarj-DcLS9LyjEqOJwFUQIIQewcK&index=5
mk thanks I'll take a look at it.
all this is without any mods enabled and maybe even not installed at all.
still working? now add a mod or two and keep checking as you run through MO. If at any point it fails then you can center on that step.
I advise watching the vids right from the beginning. that is how I have installed it for every game and have not had a problem I couldn't identify.
https://www.youtube.com/playlist?list=PLE7DlYarj-DcLS9LyjEqOJwFUQIIQewcK
Edit: Ok, never mind the former... I was proceeding into the rest of the files and not realizing the file is in the very beginning... so yeah...