How do I install the Oblivion unofficial patch? It says something about needing to download version 3.2.0 first, but I have not been able to find that file anywhere. Should I just go ahead and install the latest version?

Not sure where you're looking but the http://tesnexus.com/downloads/file.php?id=5296 has v3.2.0 as the very first file on the files page, along with the v3.4.1 updates.

It also has very clear instructions;
"If you have either no UOP installed or an older version than 3.2.0, download the full v3.2.0 and the v3.4.1 update and install both in that order."

There was going to be a fully compiled v3.4.1 but it's not done yet, so you need both.

Wow thank you so much you really saved me the time and effort.