I just recently encountered this problem and searched for an existing thread, but could not locate one. I am using Xbox 360 with Spell Tomes, Wizards Tower, KOTN and SI installed. My character is level 30 with approximately 525 game hours and many save files. The problem first started last week;

Spell animation graphic effects linger on the screen.
Secondary doors (house gates; doors you have to unlock) will no longer open.
Fireplace animation graphics are frozen/static on the screen.
Eventually, the game will freeze. The save file will corrupt, and you can not reload it.

I deleted all of the problematic save files (I thought) and reverted to working ones, but the problem eventually re-surfaces. So, I deleted the Oblivion game files and re-installed it. I did not re-install any of the additional content. Then I reverted to older files that I thought were made prior to all of this and it seemed to work ok. However, eventually the problem re-surfaced again. I do have some of the suspected criteria in the faq existing in my game such as;

A higher level character with many hours, locations on the map, and numerous save files.
Several containers with huge amounts of items. Ex: (Wizards Tower alchemy cupboard has thousands of ingredients) (Jewelry box has all enchanted/non-enchanted jewelry, etc)
I did experience a power outage before I encountered all of this. Not sure if co-incidental or not since I deleted corrupted saves & re-installed the game files.

None of the other existing games on my 360 hd exhibit any problems including FO3.

I am curious if there is any updated information on this for 360 users? Can anyone recommend a work-around?
Not that I want to, but would creating a new character/game from scratch even resolve this?

Thanks for any help, or link to an existing thread which I could not locate..

Here is the existing thread
http://www.gamesas.com/index.php?/topic/813915-slowfrozen-doors-fire-spell-etc-animations-thread-8-of-jittering-doorseffectsobjects/

Unfortunately for youthe only fixes involve hex editing of the save file, and discussion of that on the consoles is not allowed here so is a PC only thing.

It is a bug in the game that can be corrected by changing a few Bytes of the save file -- but in order to do this on a 360 save you need to use a program to convert the save to a PC usable format fix the save using the available fixes and then reconvert it to the 360 useable format and rehash the save file after reconverting it so that the 360 will open it on the xbox ( this is now possible so can be done -- but we can not discuss it on this forum as its use violates MS's EULA !)

Wow... my character's career is over. I enjoyed her so much, I never wanted to create another. Not sure what I will do.
Probably switch focus to the wastelands of DC before Skyrim.

Thank you very much for the link and the clarification/update.

Well you did say you played Dead is Dead !

Actually though the save can be repaired and you can continue with her for another 500 hours or so if you want (Received the PM and sent you the info) - if you need help getting it done E-mail me a copy of the save file