I can get Oblivion to launch through steam, but every time I hit play a small window opens followed by another that informs me "Oblivion has stopped working". All of the help steps I have gone through have not resolved the issue. Still haven't seen anything but the launch screen.

I had Oblivion playing perfectly, until it crashed. Now, I have the same issue as you. But now, it stopped CTD and just recycles between the Steam launcher and the game launcher.