I am using HDR and immersive interiors mod. Often in interiors only I get this kind of washed out http://i28.photobucket.com/albums/c247/Hcir/ScreenShot6.jpg Are there any settings in the ini I could use to improve on this?

You could tweak the following:

[BlurShaderHDRInterior]fTargetLUM=fUpperLUMClamp=fEmissiveHDRMult=fEyeAdaptSpeed=fBrightScale=fBrightClamp=fBlurRadius=iNumBlurpasses=

But it won't do much to get rid of the HDR lighting problem you pictured.
Try RPG Blackdragons "Ultra HDR". It can be found on Nexus.

Note that it gives lines in lighting.

That's an inherent problem in All Natural 1.0, the clear weathers have the HDR lighting settings set a little high, thus causing the washout. Wait around for 1.1, the AN team will be addressing this.

(I am assuming you have All Natural because you need it in order to even use Immersive Interiors)

Thanks
I have tried a Blackdragon shader before, it made little difference in the issue I am having and I found the lines in the lighting and washed out areas to be very noticeable so I switched it back out. This Blackdragon package is newer so I will give it a try and see, perhaps it will be a choice of putting up with lines or the occasional bad lighting effect. What are the lines from? A limitation in what Oblivion engine can do?

Teach me to go talk on the phone in the middle of typing a reply, see you posted in between. lol I will look forward to seeing version1.1 of a great mod!

I found editing these settings to these values helped alot for me when using Real Lights in AN... these are valued from Arwens mod site. Although, some areas in the DAY outside can be a little too radioactive like your picture but not in any interiors that I have seen yet.
This is a bit random but I also suggest Cava Obscura! It is a perfect addition to having Real Lights mod! Its great because its similar to Let There Be Darkness but its not as dark... its just... well perfect? I love it and makes dungeons dark but not too dark you can't see anything. Highly suggest giving it a try.

All you have to do is open your oblivion.ini file (make a back up copy first) and reduce the values in the following lines:

[BlurShaderHDRInterior]
fBrightScale=2.2500 (I'm now using 0.7500)
fBlurRadius=7.0000 (I'm now using 3.5000)

These next lines affect the exterior lighting, which I also found to be too harsh.

[BlurShaderHDR]
fBrightScale=1.5000 (I'm now using 0.5000)
fBlurRadius=4.0000 (I'm now using 3.0000)

Thanks for the suggestions, will fiddle with them and see what I see. Have been using Darker Dungeons but Cava Obscura looks to be worth a look.

Tried your ini recommendations and got http://i28.photobucket.com/albums/c247/Hcir/ScreenShot7bmp.jpg result from a dungeon with couple of light sources.
Neeska's horns are no longer swallowed up in a haze of light. Looks great so far. YL