Perhaps I didn't install FOSE correctly?

..right-clicked "fose_v1_1_beta9.7z" > 7zip > open archive

form there I copy/pasted all files into "C:\Program Files\Bethesda Softworks\Fallout 3"

Its easy to just double-cick the archive (.zip or .rar or .7z) and extract to desktop then manually place the files as needed.

fose_loader.exe and fose_1_7.dll need to be in \Bethesda Softworks\Fallout 3. If your using a version of FO3 other than 1.7 then use the .dll that includes the number your using.

Then create a new folder in \Bethesda Softworks\Fallout 3\Data called fose. So: \Bethesda Softworks\Fallout 3\Data\fose. And in turn within \fose create new folder called plugins. This is where the FSR files need to be. So \Bethesda Softworks\Fallout 3\Data\fose\plugins.

You can make a shortcut to fose_loader.exe and double-click that to run FO3. Or can point your original FO3 shortcut to fose_loader.exe. To do this, right click the FO3 shortcut, properties, shortcut tab and change the target to "C:\Program Files\Bethesda Softworks\Fallout 3\fose_loader.exe" if you installed FO3 in Program Files... otherwise, only the last bit is important... maybe it would actually be "C:\Games\Bethesda Softworks\Fallout 3\fose_loader.exe".

Post limit, start a new one if you want to.