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 P4 HT 3.0ghz
intel c33224-003 fan
4 GB of ram
ATI HD 2650 gpu, AGP, 512gdd3 pixel shader 4.0