I just spent a long talk with a guy who's first Bethesda game is Fallout 3 and from what Ive heard the leveling system (which scales to the player level the first time he enters an area) was so well received that its probably going to be the basis of the next TES game. OOO does somehting similar but its static and Frans uses a more balanced scaling system than vanilla Oblivion, but could a system similar to Fallout be done for Oblivion?

http://www.tesnexus.com/downloads/file.php?id=23993!

There's a list of leveling mods that it's compatible with, nGCD will be added pretty soon. (If you know your way around the CS, it's an easy edit.)

Ah Thank you Tejon, love your mods
Thata sounds interesting, Id love to hear from some other players experiences with it
If this could be compatible with Frans this would be my perfect addition to my game,

I have been trying Tejon nGCD and Frans with this mod and so far its quite a different experience. Im still early on the game but its very interesting