Hello guys, I'm new here so don't expect me to know too much

Anyways, I have a problem after patching Shivering Isles from an older patch (1.2.0.. can't remember) to the newer English patch, version 1.2.0416. So the problem is when i load Oblivion i get a white background but the "loading" text is still visible. On the main screen, instead of "Oblivion" it is replaced by a white box where "Oblivion" it should be and my mouse is just a moving white box. At first i thought the game froze every time i clicked "load game" but i was wrong. I was able to load my saved game but... the game play was in purple.. everything was in purple but there were still shades of different colours of purple so i could barely make out what everything was. The game is still okay, everything is moving as it should be put it's just the graphics that is giving me a hard time. Help would be greatly be appreciated! Thank you!
Here is my DxDiag:
Card name: ATI Mobility Radeon X1400
Manufacturer: ATI Technologies Inc.
Chip type: ATI display adapter (0x7145)
DAC type: Internal DAC(400MHz)
Device Key: Enum\PCI\VEN_1002&DEV_7145&SUBSYS_00941025&REV_00
Display Memory: 256.0 MB
Current Mode: 1280 x 800 (32 bit) (60Hz)
Monitor: Default Monitor
System Model: Aspire 5670
BIOS: ZB1 v1.3219 3B19
Processor: Genuine Intel® CPU T2300 @ 1.66GHz (2 CPUs)
Memory: 510MB RAM
Page File: 893MB used, 353MB available
Windows Dir: C:\WINDOWS
DirectX Version: DirectX 9.0c (4.09.0000.0904)
DX Setup Parameters: Not found
DxDiag Version: 5.03.2600.2180 32bit Unicode
I'm assuming it's a graphic problem but could this be also caused by a mod?
p.s I'm off to sleep since it's late so sorry if i don't reply your request.