I'm not going to lie to you - I'm straining the hell out of my Oblivion. Some of my mods are squeezing the living life out of the game. These are the mods that take up the most memory:

-QTP Redimized (Max Redimized)

-Better Cities

-Alive Waters

-Unique landscapes

-Really AEVWD

-Oscuro's Oblivion Overhaul (I think it strains my computer)

-Oblivion Character Overhaul v2

I know what you guys are going to say: man up and remove some of those mods. Thing is, I have. In past playthroughs, I mean. However, I just want one - ONE playthrough - where I can use all of these mods comfortably.

These are the performance enhancing mods I'm using:

-LowPoly Grass

-PolyGon

-Oblivion Stutter Remover

I'm sure there are more, I just forgot.

Is there anything I can do to increase performance?

What are your computer specs? I suspect it is an issue with your cpu rather than your gpu.

Well, you could PyFFI all the meshes that haven't already been...

And there are various .ini tweaks you could try (Google for these).

Otherwise, if the game is still not playable, yes, you will probably have to either: 1) upgrade your hardware; or 2) uninstall some mods.

Of all those mods you are using, the one which definitely costs the most performance is Really AEVWD - Something about the distant land display of the oblivion engine really kills the framerate when there are more than the usual distant objects present - even though they are already simplified and use small textures. On my installation, the difference between RAEVWD and no RAEVWD is about 20-25 fps, whereas most other graphics mods have barely any impact. Just try the following: Open the console and type "tdt" to display fps, then "tll" (or disable distant land in the options menu) and compare fps with and without distant land. You can safely assume, that distant land without RAEVWD would cost nowhere nearly as many frames as with it, so this will help you to to determine how much performance it costs you to use it. I don't know what your current fps are, mine are usually somewhere between 20 and 30, which is enough to explore, and if there is a battle and the framerate is too low, you can always type "tll" to disable distant land for as long as the fight lasts. Afterwards, type "tll" again in the console to reactivate distant land.

By the way, is there a way to create console commands as macros, so that I only have to press one button to toggle distant land? This is possible in Morrowind with MGE XE, and it would be great to have it in Oblivion, too, for this purpose.