I did lots of research before finally resorting to the forum. After reinstalling Oblivion about 4-5 times because I screw things up I decided to seek help.
First off, I want to get back into modding. My problem is, when I install Oblivion all the files in the data folder:
Meshes
Misc
Sounds
Textures-Compressed
Voices 1
Voices 2
are in an unrecognizable .bsa (gamesas Archives) format. I remember that when I made mods before the folders were brows-able archives where you can scroll through and see every individual file. After downloading and installing Oblivion Mod Manager (OBMM) I realized the .bsa files are now opened through that. After extracting the files, though, there are many more files than I remember. After extracting the meshes alone I now go from 1 "meshes.bsa" folder to 2-3 file folders. Again, I don't remember having this mane files. And after extracting all the .bsa folder I have like 2 sound folders, a lot overlapping and a big mess. Basically my question is, how do I extract the .bsa files to an organized file browser mode where the game runs off them files and not the .bsas.
For the game to run off the decompressed folders do I have to delete the .bsa files after extracting?
I remember that when I installed mods I just copied and pasted the modded "meshes" folder the .../Data folder on Oblivion. Then I could go in and pick out and delete individual files. Other than the questions listed above I have a pretty solid understanding of what I'm doing.
If none of this ranting makes sense, let me know and I'll try to clear it up.
Thank you all for your help!!

~Guitar