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2).Get this file: http://media.steampowered.com/content/obse_loader.zip and extract the obse_loader.exe over the top of the one from the standard OBSE install in your oblivion folder.
3) Run obse_loader.exe and everything should now work (you'll get passed through the loader first, just hit play).
At least it worked for me.
2. Unpack where it should be installed, where the Oblivion.exe file is: ..\Steam\SteamApps\common\Oblivion
3. Read the obse_readme.txt. You don't have to load the game from obse_loader.exe. That's only required in you have the retail disc version, or want to use the TES Construction Set (installed separately). Just make sure you have unpacked the files obse_1_2_416.dll, obse_editor_1_2.dll, obse_steam_loader.dll and the Data folder into the Oblivion directory and OBSE should load properly.
4. If you still have problems, make sure you have the Steam Overlay enabled. Although this is explained in the readme as a requirement, is not always necessary (I don't use the Steam Overlay with this game, and everything load properly, including OBSE and the plugins/mods that require it).
5. If you want to make sure you are running OBSE properly, you can use this mod that tests it for you, just follow the instructions on screen:
OBSE Tester
http://www.nexusmods.com/oblivion/mods/33574/
After the test, and if you don't need it anymore, you can delete it after you have closed the game.
Was this necessary? Well excuse us for not being as "smart" as you.
To point out a bs comment? Yes. What's your story?
What you will need to do is download the file from http://obse.silverlock.org
as well as the file form http://media.steampowered.com/content/obse_loader.
Once you have both files, place the ones form Silverlock in your steamapps\common\oblivion directory. Then overwrite the obse_loader with the second files obse_loader.
Hope this helps ;]
1: right clicked my steam shortcut,
2: went to Properties,
3: then click on the compatibilities tab,
4: ticked the Run as administrator,
5: click Apply.
6: Exit Steam completely and login back in making sure the Steam Overlay is enabled.
If that does not work disable your UAC(User Account Control) and do steps 1-6.
I hope this helps!!!
note: I do not take credit for this fix. Thank you u/Roftastic on Reddit and Zubat on Steam.
But how did you know about this? And why doesn't OBSE work without this file? Thanks for the help, comrade Patriot Jay!!
https://forums.nexusmods.com/index.php?/topic/6698547-problem-with-mod-organizer-2-and-obse/
EDIT:
I reverted to using Wrye Bash and OBMM for FOMODs, I want to use MO2, but it's just a lot easier and better for the moment.
I'm using windows 7 Ultimate x64.
thanks guys!