yo guys just reinstalled Oblivion and also have Ati's newest legacy drivers (im useing a x1600 pro) and i cant load exterior stuff
i can load the first level the character creation TUT and get to the grate that lets you outside but when i try to go outside BAM crash BsOD.... and the only thing that has changed on my system since the last time i was playin OBliv was my GFX drivers
Last time i played Oblivion i was using omega drivers http://www.omegadrivers.net/ They are actually made based on older 7.12 i think ATI drivers. Anyway i was running a X1650XT at the time and had no issues at all.
Cant hurt to give them a try.