I have been experiencing constant CTD's in the shivering isles, here is my load order:

Oblivion.esm
Mart's Monster Mod.esm
Knights.esp
DLCShiveringIsles.esp
bgMagicEV.esp
bgMagicEVStartspells.esp
Mart's Monster Mod.esp
Mart's Monster Mod - Shivering Isles.esp
Mart's Monster Mod - Knights.esp
Mart's Monster Mod - Additional Enemy NPC Vars.esp
Mart's Monster Mod - Diverse Imperial Armor.esp
Mart's Monster Mod - Hunting & Crafting.esp
Mart's Monster Mod - Extra Wounding.esp
Mart's Monster Mod - Looting NPCs & Creatures.esp
Mart's Monster Mod - City Defences.esp
Mart's Monster Mod - More Wilderness Life.esp
Mart's Monster Mod - Farm Animals.esp
Mart's Monster Mod - Diverse WaterLife.esp

If theres anything i can do to fix this please say so. I'm thinking it might be an issue with LAME/MMM, but i do not know of a patch.

Have you tried install the USIP? MMM and LAME should be compatible.

I honestly do not have any idea what the USIP is.

Sorry about that, bad habit - http://tesivpositive.animolious.com/?page=official_and_unofficial_patches <-- Unofficial and Official Patches (I think this is backwards...)

I think i have the latest official patch, ill try the unofficial patch. Thanks.

MMM would be broken if you did not have the latest official patch installed. You would have noticed problems before reaching SI, if it were not, haha...

My game has the latest unofficial patch. However its not only SI thats crashing. I activated the door the cyrodil and got a ctd again.

EDIT: I unpacked the BSA and am in cyrodil. Thx for the help.

Install the Unofficial Oblivion Patch and the USIP. What BSA did you extract and why...?

Please, post your Dxdiag. Actually, first, do you suffer these crashes when playing with no plugins activated?