Did a full re install and deleted my saved games, restarted and still busted. Guess I am not going to by head of the mages guild
Since I take it that you have the game for PC then I'd recommend looking at this page:
http://www.uesp.net/wiki/Oblivion:Bravil_Recommendation
In the
Notes section near the bottom of the page it outlines a method for advancing though this quest by using the developer console (default key ` which is the key left of number 1 and above TAB). By typing in:
setstage MG03Illusion 100
you should be able to skip right to the end of the Bravil Mages' Guild quest.