Finally I got a computer that can play Oblivion and Fallout 3 on Max settings. Theres just one problem I cant have Anti Aliasing and HDR enabled at the same time. Apparently theres a patch somewhere but I cannot find a working one. Anyway I've took some comparison pics and I say HDR and no AA looks better than Bloom with 8x AA.

This first image is bloom
http://img205.imageshack.us/i/oblivion201101052130166.png/

This second image is HDR
http://img543.imageshack.us/i/oblivion.png/

The only unofficial mods I have installed are low poly grass and natural environments.

Again heres Bloom first
http://img217.imageshack.us/i/oblivion201101052132321.png/

Now HDR again
http://img202.imageshack.us/i/oblivion201101052133158.png/

HDR is brighter for sure. I wouldn't say it's better. I like the darker look of the cobblestones and in general I think it gives a more natural look.

I'd rather go for a swim in the HDR lake, though, looks more like a nice summer day =)

Alot of that brightness is actually caused by natural environments mod. The water is affected as well it isn't supposed to look that clean and drinkable. The HDR looks a bit better, if only I could add 8x AA to the HDR...

HDR is basically made to simulate lighting as your natural eye would see things. Though as some games can show, this can be blown out of proportion (X-Blades anyone?) So with HDR, you are getting a more saturated color giving you more depth to objects and things like that. With bloom, IMO, it looks dull, boring, and flat.

You can go into your video control panel and force AA to be applied to oblivion, though from personal experience, it can be a little unstable.

Video control panel? I've tried forcing it with the Oblivion.ini it works but I dont notice any thing different. This is weird because Fallout 3 and New Vegas both work with HDR and 8x AA on my PC.

AA+HDR Requires a rule tweak in the drivers for Oblivion's profile if you are on an nVidia card in order to properly force AA through. This is the hexadecimal code that will allow the drivers to force AA+HDR for Gamebryo:

0x200100C5

You're going to need to use an external program like nHancer or nVidia Inspector to apply the rule tweak, as the antialiasing compatibility setting is not present in the nVidia Control Panel.

I can't speak for ATI cards, though.

EDIT: Also, Bloom is very glitchy, especially with Distant LOD. For example, you are playing on Bloom and all your Distant Buildings turn black, or they suddenly become illuminated at night as they would appear during the day.

Yeah I got ATI. I've looked it up it says I need to download some patch. The problem is there does not seem to be a working one anywhere.

I use an ATI card and I never needed a patch. You have to open the Control panel it installed. That lets you force AA.

Could you provide a video or pictures to show me what to do? Sorry but I'm new to this stuff and I'm also new to using Windows 7 and I do not want to screw around with things I have no knowledge of. Right now I'm forcing it with the Oblivion.ini file but I dont think it makes a difference.

I don't have a video or pictures, but I'm sure you can find a video on youtube that shows how to force AA. The basic gist is that you need to have the Cataclyst Control Panel installed (in addition to the regular video card drivers). If you have this, you can change all the video card settings in there. You are looking for a list of settings where you can either manually set a value, or set it to 'application controlled'. For AA, you want to set it on the max, and not have the application control it. I think that should do the trick.

I don't have the control center installed myself, so I can't make any screenshots or post a more detailed explanation where to find the setting, but from my previous experience, it shouldn't be hard to find.

I've tried that. I believe on my computer it is called CCC, I didn't see any of those options. I've tried searching on YouTube with no luck, maybe you have better luck? If you happen to find a video please post in this thread.

Ahh yes, CCC would be it.
Open it up(obivously)
In the uppe rleft, it should Say "graphics", click on this, and select 3D.
YOu should notice things like:
AA
AAA
AF
AI
Mipmap

And os on so forth. Click on AA, Then uncheck "Use application settings" And adjust as needed.

I be sure to try this when I go home. I would have prefered some screens or videos but this will work thanks.

Dude, if your computer is fast enough, download quarl's texture pack, it looks freakin' awesome

that's a totally different thing though, it doesn't solve his anti-aliasing needs.

I don't use mods that are in OMOD format. Anyway I got that AA thing working, It looks a lot better now, When I get home I'm going to post some comparison screenshots.