Ok I was installing Maddogs fantasy mod at the link below but I have no idea how. This is my 1st mod so please keep insults to a minimum please.

http://www.tesnexus.com/downloads/file.php?id=10416

If you're familiar with how to extract an archive, you just extract the Data folder in it to your Oblivion folder and the mod's meshes, textures, and the mod plugin itself will be copied to your Data folder there. Then, either using some like Oblivion Mod Manager, Wrye Bash, or Data Files from the Oblivion launcher, you activate the mod. From there it should be good to go.

well that mod needs 2 files, I downloaded them and right click on the main file and go to 7zip, and press the button extract file. I then move it the the data file in the oblivion folder but when I go on the launcher and go to data files all I see is oblivions master file, shivering isles, and knights of the nine.

If you are on a computer with Windows Vista or Windows 7, you will want to install Oblivion outside of C:Program files to avoid UAC (User Account Controls). I use a folder called Games, Oblivion is installed in C:Games\Oblivion.
My Hard Drive looks like this,
Games <--- All of my games get installed here, if I used Steam it would go in here too.
NVIDIA
Perflogs
Program Files
Users
Windows

You want to get in the habit of using a utility like Wrye Bash's BAIN or Oblivion Mod Manager (OBMM) for instaling your mods. Using a utility makes installing, upgrading, and removing mods easier.

Ok I just got obmm and I'm going to download the mod. What do I do after that? I ahve 7zip if that matters.