I think the skyrim method of sun damage is more interesting than in oblivion. Not regenerating in sunlight but not taking active damage gives you a weakness to go outside, but not make it totally unfeasable. Would there be a way to do that for oblivion?

I tried it myself with the LTD overhaul as a base, but it didn't quite work as intended. LTD's mod has a monstrous form toggle that gives you increased abilities. So I gave my character the atronach birthsign and went into the construction set and added restore magicka 5 to the monstrous form ability. What happened is when I toggle the form to go to monstrous, it just gives me 5 magicka, not 5 magicka per second as I wanted it to. Any ideas?

Edit: Well I think I found a solution. I originally used the monstrous attributes as a disease, and it seemed to apply those once. I instead tried it as an ability, and restores magic at 5 per second just as I want! It's not exactly like skyrim, but I like it. Outside I go to normal form with no sun damage and no magic regen. Inside or at night I can be monstrous form and I get sun damage and magic regen, but I would also scare npc's, so I gotta be sneaky when I need to regen. A side effect is that there's no good reason to upgrade my willpower except for extra fatigue, but that's not a big deal.