Can i run oblivion better. Another question on crashing!.!

Heya all
I have been trying to run Oblivion with quite a bare cpu
i have a 2500+ amd and a asus motherbored A7NX8-x
i just upgraded to 1gig of ram and brought a new 6600GT card.
after messing around with the game i have it running quite smothly but i am runnign it in the lowest resolution and with everythign turned right down or off.

This detracts quite alot from the game play beacuse it is like my charcter is always surrounded in fog and i cant see more then a few feet in front.

My question is what would i be able to turn on without crashing my system?
I would like to maybe be able to see what is around myself more. is there any tweaks or small things that i can change that will keep the game stable but make it more pleasent on the eye?

Thanks in advance

That 2500 should also be overclockable shouldn't it which should help no end.

I had a 2600xp oc'd to around a 3200 level, same mobo and a 9800xt The game ran at 1280*1024 with most settings at max at a reasonable 25ish fps.

Thanks alot guys your imput is very much apreciated

But i have played around a bit and got it looking quite nice.
The big problem im having right now is that sometimes while playing Oblivion it freezes in certain points and my computer reboots its self.

Happened while i was fighting a creature and i advanced in blade skills at the point of delevering the death blow and also happened when i tried to exit out of various conversations with NPCs the whole screen freezes and the next min my computer is restarting.

any ideas what may be causing this and how could i fix it

Thanks once again.

This is what im getting now. i have the latsest nividia drivers

A problem has been detected and Windows has shut down to prevent damage to your computer.

The problem seems to be caused by the following file: nv4_disp

If this is the first time you've seen this Stop error screen, restart your computer. If this screen appears again, follow these steps:

The device driver got stuck in an infinite loop. This usually indicates problem with the device itself or with the device driver programming the hardware incorrectly.

Please check with your hardware device vendor for any driver updates

Technical Information
*** STOP: 0x000000EA (0x81A10A00, 0x82208008, 0x81A1CAD8, 0x00000001)

nv4_disp
Beginning dumb of physical memory.
Physical memory dumb complete.
Contact system administrator or technical support group for further assistance.

Its not overheating
Thanks for the fast reply

Did a heap of serching for problems like this and i found quite a few people getting the same thing. it used to just restart so i turned of restart when system fails and turned on report errors. this alowed me to get the txt that i posted b4. I tried running the older drivers it seemed to be worse. i then tried to patch oblivion and it seems to crash when ever i get involved in a fight. i can turn the graphics to very low and i dont seem to be having so much trouble but the world looks very early 90s graphics If i change the settings to low then it crashes. From the other people i have read that have the same problem no one has really come up with a anwser yet.
I belive since i patched poblivion the problem has got worse or the crashes seem to be more frequent (although that could just be the aera that im up to in the game which is first oblivion gate). i uninstalled all my drivers and reinstalled 84.21 i think. The problem hadnt gone away.