Oblivion texture issues

My oblivion is glitched in some way. I have all settings on max and the graphics look really bad. Grass is all blurry and textures are just plain crap. I own for 360 and the graphics are good. I look at my PC and they are horrible everything is blurry and looks outa place. just finished reinstalling it for the seconds time and it doesn't make a difference. For example snow, grass, bricks, all have a square pattern on them they almost look pix-elated. People are blurry clothing textures look generic and low quality, cant see detail at all. I had this problem when i first got the comp and had to reinstall windows to fix it. I just finished playing through Metro 2033 on all high with no problems. ATI radeon 4850 is my card. It seems like the graphics are stuck on low quality. is there some way i can manually change the setting in the INI.? I reinstalled it twice and made no difference i then spent 2 hours installing all my mods and a HUGE texture pack but all that did was make the textures even more square and blotchy. Really need some help on this one i don't wanna have to reinstall windows just to play oblivion until the next time this happens. I just loaded up my fallout 3 and it's doing pretty much the same thing but not nearly as bad. Any help whatsoever would be appreciated. I cannot figure out how to post pictures or DXDiag. If someone tells how to post pix and DXdiag i will do so.
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More about oblivion texture issues
  1. file:///C:/Users/Anthony/Desktop/DxDiag.txt
  2. enable anisotropic filtering in catalyst control panel and set it to the max setting available.
  3. No i figured it out already thanks. Drivers were messes up. I used driver sweeper to completely delete all GPU drivers reinstalled latest from AMD.com and textures are good. Was getting so annoying.
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