I noticed a lot of people have been asking about the 360 controller. Oblivion's support for it is pretty terrible. Using Control MK, this is how I've gotten it to work.
1) Go to My Documents\My Games\Oblivion. Go into the configuration file, called 'Oblivion'. Once in the file, find:
If it is at 0, change it to 1. If it is at 1, leave it as it is.
Then, find:
iJoystickMoveFrontBack=2
iJoystickMoveLeftRight=1
fJoystickMoveFBMult=1.0000
fJoystickMoveLRMult=1.0000
iJoystickLookUpDown=6
iJoystickLookLeftRight=3
fJoystickLookUDMult=0.0020
fJoystickLookLRMult=0.0020
And replace it with:
iJoystickMoveFrontBack=0
iJoystickMoveLeftRight=0
fJoystickMoveFBMult=0.0000
fJoystickMoveLRMult=0.0000
iJoystickLookUpDown=0
iJoystickLookLeftRight=0
fJoystickLookUDMult=0.0000
fJoystickLookLRMult=0.0000
Step one is done! Thanks to Cochese for that part!
Step Two!
2) Go into Oblivion. Go into the keyboard controls area. Restore all to default. Then, scroll down, and find grab. You'll see it's set to 'Z'. Change it to 'shift'.
Step two is done!
Step Three!
3) Go to http://www.redcl0ud.com/controlmk/index.html. Download the latest version of Control MK. Install this wherever you want. It's not a very big file.
Step three is done!
4) Go to http://rapidshare.com/files/6675837/oblivion.pro.html (or http://www.box.net/public/q0rno0d1s6). Put the [very small] file in the same folder as Control MK.
Step Five!
5) Go into Control MK. In the first two drop down boxes, select the 360 controller.
A
D
W
S
Mouse left click
Mouse right click
Mouse move X neg
Mouse move X pos
Mouse move Y neg
Mouse move Y pos
Space
Tab
F
E
Shift
C
T
Escape
Control
R
The keyboard buttons have a VK_ prefix, like VK_R in the drop down menu.
Quite an important part: you should see a few boxes towards the bottom of the Control MK screen. One should say 'DeadZone'. Make the number 20 instead of 10. Remember to click apply, then save. Thanks to Jordash for that!
NOTE: I'm not sure, but you may have to click the arrow next to the third box, select export, and save it as something. This may not be necessary, but it's good to have a back up incase something goes wrong.
And you're done! Go into Oblivion, and use the controller perfectly!
More stuff:
With this, you can use the d-pad for the eights hot-keys. Or use one button of the d-pad for the toggle run/walk button. It's up to you. Control MK is pretty useful once you work your way around it.
Of course, this won't be like playing the 360 version. To click on something (like in the menus, or when talking to someone), use the right trigger. The right trigger is the equivalent of the left mouse button. However, the controls are mapped out exactly like the 360 version.
If you want to walk around for some reason, you're going to have to set one of the d-pad buttons as the toggle button. In the 360 version, if you push the thumbstick gently, it walks, if you push it hard, it runs. With this configuration, even when you push the stick gently, it will run. However, I have a work-around that I haven't tried, but I'm confident that it will work:
Remember the file you were in before, where you changed this:
iJoystickMoveFrontBack=2
iJoystickMoveLeftRight=1
fJoystickMoveFBMult=1.0000
fJoystickMoveLRMult=1.0000
iJoystickLookUpDown=6
iJoystickLookLeftRight=3
fJoystickLookUDMult=0.0020
fJoystickLookLRMult=0.0020
to this?
iJoystickMoveFrontBack=0
iJoystickMoveLeftRight=0
fJoystickMoveFBMult=0.0000
fJoystickMoveLRMult=0.0000
iJoystickLookUpDown=0
iJoystickLookLeftRight=0
fJoystickLookUDMult=0.0000
fJoystickLookLRMult=0.0000
Well, if you want to be able to push the thumbstick gently for walking, change it to:
iJoystickMoveFrontBack=2
iJoystickMoveLeftRight=1
fJoystickMoveFBMult=2.0000
fJoystickMoveLRMult=2.0000
iJoystickLookUpDown=5
iJoystickLookLeftRight=4
fJoystickLookUDMult=0.7500
fJoystickLookLRMult=0.7500
Next, go into control MK. Select the profile you just downloaded. See where it has the four lines saying X rotation, Y rotation, etc? Well, click on that (the part to the left), and in the drop down box, select 'none' for all four. Save it. Now, Oblvion controls the movement stick. So, now you can push gently to walk.
If you're wondering why you had to set grab as shift, it's so you can drop items. In the inventory, press left bumper + right trigger to drop something.
Unfortunately, vibration and the 'ring of light' don't work on the PC.
Enjoy!