I just Bought a PC usb controller for my laptop as i started to play oblivion i changed the settings to joystick and edited the options to my liking. but once i started playing i unable to use the right thumbstick in order to look. can anyone help me with whats wrong or what to do about it.

You need some manner of third party software, to 'translate' the inputs to something that the game expects. I think there is some good info in one of the sticky threads for doing this. (or, maybe a link to getting it set up.)