hey arth, yeah im using 64bit windows 7. i figured out the problem!
i simply had to edit the obse loader too in CFF explorer and now i can go past 2gb.
your open cities mod sure likes to hog that ram huh arth, jk
but totally worth it XD
on the other hand, i still havent figured out what this heap mode set to 5 is that was recommended, there is no heap mode that i can see. lol i believe this is quoted from you as well arth. i have the heap size changed, but the only mode i see is in criticalsections. mode 5 for that would be * suppressed* and it causes CTD at loading screen.
You may need to install Oblivion Stutter Remover, set the heap mode to 5, and the heap size to 1024. Once I did this, the game became much more stable and I was finally able to confirm that the LAA patch does work. The more high intensity graphics replacers you use, the quicker things are going to fall apart, so you need the larger heap size in order to deal with it.