I see in the original, non-lite version they had the same bug but someone had fixed it in an updated version (http://www.tesnexus.com/downloads/file.php?id=4988). I dont use this version because it removed much more than just the "now loading.." dialog.
Is there a mod maker here that would be willing to take up fixing the "Lite" version in the same manner? The mod is 1kb I couldn't imagine it taking much work to fix, though I honestly don't know because I don't know the first thing about Oblivion modding.