I am posting this here cause I love this place and I really need a place to share this fix so people can find it. I spent five hours this morning trying to find a way to get around this bug and when I ran out of ideas I asked a friend. When I thought he was about to run out of ideas he gave me a gem of a fix that worked.
If you are running the game on a quad core system and you run into this problem, open your task manager, find the oblivion process and right click on it, set the affinities to only three cores and you wont have this problem.
If you are running the game on a quad core system and you run into this problem, open your task manager, find the oblivion process and right click on it, set the affinities to only three cores and you wont have this problem.