I have Oblivion installed in the default location ( C: Program Files) on Windows 7. So I'm not sure that my mods are working correctly. Sometime when I open OMM I get a message about files being moved to the virtual store and do I want to move them back. Should I choose yes or no? Is it Possible for me to move Oblivion to a different file on my computer ? I don't want to lose my progress .
Thanks

You can move your Oblivion to another place. But some modding-tools use the registry-key which points to the installation-location. I think TES4Edit is one. So maybe you have to change the key too.
The key is in "HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Bethesda Softworks\Oblivion" and it's named "Installed Path".

If you're using a 32-bit-system, the key is in "HKEY_LOCAL_MACHINE\SOFTWARE\Bethesda Softworks\Oblivion".

I'm not using TES4edit. Do you know what I need to do to move it ?

He just told you. Move your Bethesda Softworks folder, update shortcuts and change the path in Registry. That's all.

How do I update the shortcuts and change the path in the registry? Isn't messing with the registry bad ?

When oblivion in uninstalled, in removes just the vanilla Ob files (esm and bsa's) only and deletes the registy entries for it. It doen't touch any additional content in the data folder, i.e. all your mods.
So you could uninstall it, reinstall to the somewhere else you want it, then just move you mods into the new data folder. This may be the easiest way if you don't know how to, or want to start messing with reg keys

That's easy enough to do.But how would I save my save files ?

They aren't removed when you uninstall either, but to be safe just go to Documents\My Games\Oblivion\Saves and make backups

If you are using Vista or Windows 7 you could attempt to use a junction point. But I am not sure how well Oblivion will handle that even though it is just a shortcut.

Just uninstall Oblivion, as said earlier. Then reinstall it to wherever you want it. You save games will remain intact. You'll have to install mods again. Or copy them over from your previous directory.

Well,I tried uninstalling it but it wouldn'y let me.I get a "Feature Transfer Error" stating that "The process cannot access the file because it is using another process." I thought maybe the process it was referring to was OMM so I uninstalled that. No luck- same message. And now if I try to launch Oblivion it just crashes to the desktop with a message that just says "Oblivion stopped working"
Any ideas ?

Ok,I got it to un install. Now I'll try to reinstall it in a different location.

Ok, I got it straightened out