The PC version of Oblivion never had good gamepad support. Thats one of the main reasons I ended up buying the 360 version. Check the bethesda forums, there are work arounds for the issues but I never could get things working enough to make it worth using a gamepad with.
You are about to answer a thread that has been inactive for more than 6 months. If you still wish to proceed, please ensure that your posting is original and does not duplicate or overlap any prior responses to this thread.