I installed the game to C:/Game Files as every one says it doesnt work right in Program files. but the game just crashes on start.
I have the GotY ed.

Windows 7 Ult. 32bit
Core 2 Duo e6300 OC 342MHz x 7 ~ 2.4GHz
Radeon HD 4650 512mb ddr2
4GB (3.3gb) DDR3 ram

Did you have oblivion installed previously? If so, delete the oblivion.ini on your my games directory.

No, this was a fresh install of Windows 7.

but I did save the files from 'My Documents' and I installed Oblivion then I realized I still had the Oblivion folder in there from my previous install. I removed it and it is still crashing.

I got it to work

Turns out the game doesnt like 1280x800. I set that in the Ini and it would crash. any idea why?

Use the stock oblivion launcher to set resolution. You should be able to do 1280 without too many problems.

The problem is on Windows XP I was able to set it to 1280x800/1280x720 in the launcher. now I am only able to use 1280x768/960/1024

What monitor make/model are you using? Aspect Ratio?

It's a Gateway EV700, but I was able to run games prior to my Windows 7 install in 1280x800 as I prefer widescreen over 4:3/5:4 some games still work on 1280x800, just it seems Oblivion doesn't like it.

EDIT: It was just a driver issue. I updated to 11.2 last night and now it has 720p and 1280x800 now.

I'm hoping I can get a decent widescreen LED monitor soon, but I might have to wait till I upgrade my video card as my current card might be to weak for 1080p.
I won't be upgrading untill the HD 7670s arrive.