Are there any mods that affect the AI of NPCs in Oblivion? Something that would make NPCs do more than just do their regular schedule. Instead, they could fight/steal/etc. on their own initiative, go into dungeons on their own. Stuff like that.

I'm eyeing MMM with its wandering adventurers though I'll probably be doing FCOM anyway.

Hmm, well uhh.... Trying to think of what would fit, I mean:

some Duke Patrick mods have effects on combat ai, and NPC alertness and such. There's also the other combat mods (like Deadly Reflex, Unnecessary violence, etc.) though that's usually just dodging or, using special combat moves.

If you're talking about day to day lives. Kuertee made a mod that has the random bandits and such wander throughout the wilderness (Wandering Encounters).
The NPCs added by Integration: The Stranded Light all have pretty interesting schedules, but nothing to the point of pickpocketting people or getting into fights... that's kind of dirty(ie: people you don't want to die, dying because of how screwed up the games crime ai, and disposition system is*.)

Back on the subject of combat: Kuertee has another mod, also Picador originated the mod idea... that allows you to make truces with enemies or make them surrender.

Syclonix was working on a BRAINS project, but he didn't have the time and made it open source... it was going to do a whole bunch of things related to AI... I don't think anyone has picked up the project yet.

I'm not aware of any other AI, or schedule mods though... There are plenty of mods that add like : pickpockets, or murderers, but that is done through the standard AI with... responsibility, dispositions, factions, and all that.

*case in point: Be champion of Cyrodiil, Arch mage, leader of the fighters guild, and the holy crusader.... now slice a guard in the middle of a town with a rusty dagger, and do nothing else.... congratulations, you just killed half the town.

Good topic, sabishii. This is one of the areas of the game crying out for more mods to address its shortcomings, and one I am particularly interested in.

How about NPC ACE by QQuix:

http://www.gamesas.com/index.php?/topic/1060697-wipz-npc-ace-npc-advanced-control-engine/