Ok, it's just called knights.esp and theres also a knights.esm file as well. I can't remember how i got it and i've searched for it everywhere. Did it come with deadly reflex, OOO, MMM or Armamenterium?

http://www.google.com/search?sourceid=chrome&ie=UTF-8&q=knights.esp
prolly knights of the nine.

It's from Knights of the Nine.

Do you have the game of the year? It's the only way I can think of that you could possibly get Knights of the Nine and not even know you have it. Though it would be quite prominant on the case, where did you get the game? Retail or online store?

Knights.esp is for Knights of the Nine. There isn't any such thing as Knights.esm. At least not legitimately. I'd suggest reinstalling your Knights of the Nine material after deleting both of those in case something fishy is going on.

Maybe he meant Knights.bsa ?

Actually, the wrye bash site makes mention of the 'new Kinghts.esm', can't find anymore info on it yet.

edit: Maybe the more recent releases of the GOTY had the DLC as ESMs rather than ESPs?

Afterall, the Fallout DLC were ESMs. Maybe they changed the Oblvion ones recently.

No. Oblivion can't support DLCs as esm files. Knights.esm is bogus.

There should be a Knights.esp and Knights.bsa but that's it. Anything else should be deleted.