Here's a couple of pictures: http://i22.photobucket.com/albums/b350/Dragon_32/Oblivion/zfighting1.jpg and http://i22.photobucket.com/albums/b350/Dragon_32/Oblivion/zfighting2.jpg, which show what I mean (a video would be better but hey ho). If you look at the middle row of stone blocks on the Ayleid structure in the two pictures you can see where the flickering is happening. This is a very rapid strobing and is pretty effectively described and explained over on http://en.wikipedia.org/wiki/Z-fighting.
I've tried a number of things: different versions of that mesh (vanilla Oblivion, PyFFI'd vanilla Oblivion, UOP, PyFFI'd UOP); different texture replacers; changing the SSAO shader I use in OBGE; altering a number of options in OBGE.ini (the RAWZ fix, as I have a Nvidia 570; setting iBufferTexturesNumBits, iBufferZDepthNumBits and iBufferRawZDepthNumBits) and nothing seems to fix things.
As you can see from the screenshots I'm pretty close to the ruin when things are flickering so I don't believe it's caused by fighting between LOD meshes and standard meshes. But I'm not sure. If I get really close then the flickering stops. I've tried uninstalling (via BAIN) the various Ayleid ruins meshes from my VWD mods but that hasn't helped.
I'm a bit stumped now and a Forum search hasn't really helped, has anyone got any ideas?