Try deleting the .ini file in your My Documents\My Games\Oblivion folder....it is the confiugration settings file named
Oblivion. Then restart up the game and a new one will get regenerated acccording to your latest hardware config. See if things improve
Can also try reinstalling video card drivers.
The Radeon 5750 actually should not be detected by the Oblivion launcher because it was made well after the game's release and last patch...it will just default everything to medium. You can always manually adjust settings to be higher too. The card is going to pretty much max out the game up to an extent, but I do wonder if your power supply is sufficient for the upgrade you just made.
If nothing please Post a dxdiag:
Start - Run (if Vista or Win 7, the search box acts like Run) - type dxdiag - hit Enter - "save all info" button - open txt file and copy/paste
EVERYTHING here
Picture of process: http://www.windowsresource.net/cimages/gotodxdiag.jpg