I know this sounds repatitious because you have done this already, but Sometimes you have to repeat the same steps but get rid of the old files first.If you have previous files in these folders then go through the steps listed below to remove them and start over. As a last resort if all else fails, sometimes you have to uninstall Oblivion and the CS and do a new install. But again, only as a last resort. Usually just doing the steps listed works.I hope this helps in some way
1. Delete the Distantlod folder from your Data folder.
2. Go into your Texture folder, then find the landscapelod folder. Inside there is a folder called generated. Delete the generated folder.
3. Go into the Mesh folder and find the landscape folder. Inside the landsape folder is a folder called lod. Delete the lod folder.
4. Load up your cs and save before entering the heightmap tab. When you have your heightmap loaded then go up to file and then down to the generate full lod tab. Once you have generated the lod's then save.
5. After savingt close out ot the heightmap screen. Then save inthe main cs as well. If when you try to save and it says cannot load or find landscape in some cells(usually 0.0, 31.0 etc.) smooth those areas alittle and continue with save in main cs.
6. Use Tes4qlod to generate Distant lod's and all should be well.
I have built many world spaces and have had the same problem you are having now and was able to correct it everytime. Let me know if this works for you.