Alright so, I installed the TES Construction set and tried mixing on it.. didnt work, so i went in game and well.. this is how it looks now thanks to the construction utility...
http://i213.photobucket.com/albums/cc81/sckizman/obliviontexturefailure.jpg
If anyone has any clue on how to fix this cept from reinstalling, i'd be happy to do w/e it takes.