It's funny how we go through these cycles. I've been an Nvidia user for decades. We used to use ATI (call it a bit of patriotism - they are/were Canadian

), but Nvidia ruled for a while. I just finished buying my husband a Radeon 5970

Unfortunately he doesn't play Oblivion, so I can't say how it performs... He wants to play Crysis at full settings.
I'd hang on to your 470 - I think it will do fine with newer games and Nvidia will get the driver issue sorted eventually. You might consider going back to your 8800 GT or getting an ATI. I've heard ATI's perform very well with Oblivion. I'd do some research and get the best performing 100-200 card to tide you over until Nvidia gets things sorted. Tom's Hardware has the best reviews, imho, or not so humble, as the case may be

After giving my hubby the 5970, I got his 285 and it's doing very well. Unfortunately the 285 is the hidden gem that's not available anymore (so I can't SLI

).
You could also try simply uninstalling and reinstalling your drivers, but I think someone suggested that already. You'd have to make sure you cleaned them out completely - see http://www.tweakguides.com/NVFORCE_1.html for instructions. Now trira is correct about MTAEVWD, but I don't think you're running that...