The solution lies within "Head06 REPLACER" not to be confused with "Head06 RESOURCES", which comes with a DLL to fix texture stretching. I just finished researching the same thing. Hope that fixes ya up! Oops, almost forgot the link: http://www.tesnexus.com/downloads/file.php?id=20335
From the ReadMe:
"-······| Installation |······-
Unpack the contents of the .7z archive directly to your Data folder:
x:\[InstallPath]\Oblivion\Data
Check 'Head06 Replacer.esp' into your load order.
If you have other race altering mods, you may want to consider using
Wrye Bash to merge this mod into a Bashed Patch for compatability reasons.
http://wrye.ufrealms.net/#WryeBash