[SOLVED] Can't get OBSE and Steam Overlay to work, tried EVERYTHING

[Zeus Plays]

EDIT: Reinstalling the game into the main Steam directory did the trick. I also had to remove the leftover files form My Documents/My Games/Oblivion and let the launcher regenerate them, because otherwise the game would crash on startup; I'm now able to load the game via the old obse_launcher.exe, and Blockhead's .ini was successfully created. Hope someone dealing with the same problem will find it useful!

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I've been at it since yesterday, and I'm at my wit's end. I have the Oblivion GOTY version, and OBSE - and the Steam community overlay for that matter - just won't run, no matter what I do. I'm using Windows Vista x86, my Steam files are located on the D:\ drive, with Oblivion being installed into a library on the E:\ drive.

Steam Community is enabled in my main Steam settings, as well as in Oblivion's settings.

1. I copied the obse_1_2_416.dll, obse_editor_1_2.dll, obse_steam_loader.dll files, and the Data folder, into my common/Oblivion directory. OBSE wont' launch with the game when using the Steam button, as it's supposed to; Blockhead won't create the .ini file, the OBSE Test Plugin doesn't work. Latest obse_loader.exe tells me to use the game button instead.

2. http://forums.steampowered.com/forums/archive/index.php/t-900993.html Copied the old obse_loader.exe into common/Oblivion and tried launching the game through it: I get an "Applicaiton load error 5:0000065434" message. I tried running it as administrator, same story. Also tried running oblivion.exe, both normally as administrator, same error.

3. I ran Steam as administrator, as advised here: http://steamcommunity.com/app/22330/discussions/0/540740500503617621/?insideModal=1 didn't do anything.

4. I checked and triple checked and checked again, yes, I did install the exact files into exactly the location the OBSE instructions told me to.

5. I reinstalled the game. Same story.

If anyone has dealt with this, and knows what might help, I'd be really grateful. I'm certain I did everything I could on my end, short of reinstalling Steam, but I'm not willing to do that. Right now I'm reinstalling the game AGAIN, this time into the D:\Program Files (x86)\Steam directory, instead of the custom one on the E:\ drive I installed it on previously.

[RE:Deemer]

Glad to see that someone finally found a fix for this recurring problem...

[ericore]

Bingo, delete the oblivion folder in My documents/My games.
The problem is either wrye bash or some mods corrupted these.
Stupidly steam doesn't automatically purge this upon deleting local content.
Sure keep the saves, but delete everything else.
Confirmed OBSE 0021 works just fine as is, don't need older steam loader.