What 1.8 Gb limit are you refering to?
On a 32 bit system when oblivion hits memoty usage of 1.8BG (sometimes at 1.5GB) it crashes every time. Mods like streamline that purge the cell buffer every so often help but it will evantuall crash. That is why you have the 4GB and LAA patches, to allow Oblivion to go beyond that. Search the threds.