Why does oblivion lag when im next to npcs?

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I've just recently brought TES 4 Oblivion off of steam, and it runs fine, it's just that when I'm next to, say, more than 1 NPC at once, everything starts to lag until i kill the npc and it goes into a rag-doll state.
Can anyone help me? :sweat:

Here's some extra info:

Oblivion system requirements:
OS: Windows XP, Windows 2000, Windows XP 64-Bit
Processor: 2 Ghz Intel Pentium 4 or equivalent
Memory: 512 MB
Graphics: 128 MB Direct3D compatible video card and DirectX 9.0 compatible driver
DirectX®: DirectX 9.0c
Hard Drive: 4.6 GB
Sound: DirectX 8.1 compatible
(Obtained off of the steam website.)

My Specs:
OS: Windows XP SP3
Processor: dunno :(
RAM: 1024 Mb
Graphics: Nvidia Geforce 7300le
DirectX: DirectX 9.0 (i dont know what letter :|)
Sound: Good enough :)
(as you can probably tell, I'm not a computer specs wiz :S)

Thats all really! :D
 

xAPOCALYPSEx

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Hmm... Do me a favor.

Go to the start menu, then "run" and type in dxdiag and press enter.

There it should give you all your specs, including the processor. Please tell me your processor and "system model".

That graphics card is pretty old, but you are probably running from a low-resolution monitor.

I think 1GB (1024MB) of RAM is pretty low for Oblivion, so that could definitely be a problem. If you can run oblivion fine, then I doubt it is your graphics card. So it is (probably) either your processor or your RAM.
 
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My system model is GT5054B and my precessor is a Intel(R) Pentium(R) D CPU 2.80GHz (2 CPUs)

By the way what is a page file?
Because it says: 373MB Used, 2083MB available...
 

xAPOCALYPSEx

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My system model is GT5054B and my precessor is a Intel(R) Pentium(R) D CPU 2.80GHz (2 CPUs)

By the way what is a page file?
Because it says: 373MB Used, 2083MB available...

Don't worry about the page file; that is something completely different. The processor you have there should be fine playing Oblivion. Upon looking at your motherboard however, 1gb of ddr2 533 which I believe your system has is not anywhere near enough. If you want to be able to play Oblivion fine, you may want to upgrade your system all together, as I don't know that adding more RAM will help you here. If you want to invest anywhere from $600-900+, you can build a system yourself that can play Oblivion no problem. Other than that, I am not sure adding more RAM will help you :(
 

xAPOCALYPSEx

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actually, after reading a few things, I think an extra gig of DDR2 533 WILL help you, but I am not sure how much. It is very very cheap, so whether or not it does help, it won't hurt your wallet much :D
 
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Thanks for the help! It's greatly appreciated! :D
I was thinking about your advice and I've decided that I'll go with the idea of an extra GB of RAM, if that doesn't work I'll just get a really nice new PC. :p
 

xAPOCALYPSEx

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Thanks for the help! It's greatly appreciated! :D
I was thinking about your advice and I've decided that I'll go with the idea of an extra GB of RAM, if that doesn't work I'll just get a really nice new PC. :p

Glad to hear it! Make sure you get the right type of RAM (DDR2 533), as not all types will work. Happy to help, Oblivion really is a great game and I still enjoy playing it now and again.