I now have a completely stock oblivion directory (hence why I am not posting in the Oblivion mods forum), and I have deleted the My Games/Oblivion folder so that all the ini files are reset. Yet somehow the weapon and armor stats are still exceptionally low when I start a new game, I really am stumped on this one. I previously had the same problem on another computer with the DVD version, but I thought it was caused by the mods, not vanilla.
I searched the wiki and forums to no avail, any suggestions?