the ini file is stored in mydocuments/mygames/oblivion/oblivion.ini (something like that, once you've found your mydocuments section is shouldn't be hard to find)
Maybe the ini file is set to 'read-only' and because of that it cannot write the changes to the file...
No... I know where it is, and I can alter it - I just don't know where the specific settings are.
Make the changes in the game, and then, still in the main menu, open up the console and type in "saveini" without quotes.
That worked - thanks. But, I'm still having some issues with my trees - they look http://project-phoenix.wikidot.com/local--files/files/trees.JPG until I get to within 10 feet or so, then they appear normally. I'm sure it's a LOD issue, but I've set distant LOD on, and I ran TES4LODGEN just be sure.