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Go to My Documents/MyGames/Oblivion/ folder, find and delete Oblivion.ini
So one shiny, fresh clean install and BAM ctd after the launcher screen! Of course I had to launch about 20 times and watch it ctd before admitting there was an actual issue. I thought it may have been the Steam copy so scrapped it and did a non Steam install from my original CD's. Same issue. Tried turning on and off different DLC. No love to be found there. Even went back to my backed up copy and imported just the config files. Still CTD. Tried replacing the game exe from the backup, but no fun game times to be had there.
Anyway I did things and I'm not sure which fixed it and to be honest I'm too lazy to investigate further but here is how I made it work.
1. Have a nice fresh install.
2. Turn off all DLC by going to "Data Files" in the launcher
3. Close the launcher
4. Right click on Oblivion in your library and click "Properties"
5. Select the "Updates" tab and uncheck the Sync to Steam Cloud thingy
6. Go to Documents>My Games>Oblivion and delete everything - there are 3 files Oblivion (config file), BlendSettings and RenderInfo. Get rid of them.
7. In the same location, open the Saves folder and sod all of these off to the recycle bin as well.
8. Launch the game and tada! Gaming goodness!
9. Close the game, relaunch and turn back on all DLC and sort out your graphics settings under Options if they require tweaking.
10. You can at this point turn back on your Cloud Sync and wait for it to download all of your saves. I chose not to as they were saves I made with mods I am no longer using.
As I said. No idea which one of these steps fixed it. More than likely it was the 3 config/render/blend files. (new ones are generated when you launch the first time after deleting them).
Hope this solves your issue.
Simple and effective, worked for me. Bless you.