Elder scrolls 4 Oblivion Crash

Ok so here is the deal, I have had oblivion for awhile and ran it on beautifully on an older machine.
Well now I just built "cheap" machine to see what it could do and here it is:

Intel MOBO
Intel P4 HT 3.0ghz
intel c33224-003 fan
4 GB of ram
ATI HD 2650 gpu, AGP, 512gdd3 pixel shader 4.0
160gb HD
diamond 5.1 surround sound card

Ok so here is my situation.

I installed this tonight after replacing a power supply and I began playing it and during character creation the game crashes, im like ok FTW!!???
so i restart it and it plays for about 20 minutes or so and then crashes again.
Well I run CPU-Z and speed fan and my core temp is 57c running this game, which is about 133f I believe, and I know oblivion is notorious for crashing, but I know that I haven't seen or read about any known issues with the GPU, or mobo,ram, or processor, so I am thinking that its just he CPU's core temp is to high and it causes it to crash every 5 minutes to 15 minutes of actual game play.
So I was thinking would it be possible if I went with a new heatsink and fan that ran higher than 3200rpm and used a better and more stable thermal compound that the reduction in heat will cause the game to crash less often to not at all?
let me here some advice.

Later

i ran Oblivion on a socket 478 ~ P4 3.0; 2 gigs ram; 7800gs AGP 8x card; and 160 WD EIDE drive. it ran beautifully, with little on no crashes. under load the cpu ran 115-125F(dont know the C of it) in most games Cod4; WiC; Oblivion; CoH; CS:S....etc. it had a after market cooler on it from tigerdirect.com.

check to make sure you have all the latest driver installed - you know board(including BIOS) gfx; sound; etc... you can download a program called driver magician to check and see if all the driver are up-to-date. thats usually the case - out dated drivers. if not try what rayzor said and reinstall the game and dx9. and get back with us.

I ran oblivion on my cheap Best Buy bought pc that i have at the moment and it kept crashing about 20 or so minutes in game, sometimes at the character creation and it took me three weeks with a lot of help but all i ended up doing was disabling my sound card. For some reason all it was was that. I dont know thats what fixed that issue for me.