I started playing Oblivion again after a break a while ago. I installed a few mods, checked in between them that everything worked and yada yada.
Now, however, almost every time I get damaged the screen starts to flicker (where normally should be some kind of blur) so that every other frame is the distant landscape (in exterior cells) or a random place in the area (in interior cells) and the other is the normal view.

I tried uninstalling mods and it partly worked: at one point I was able to start a new game and there would be a chance that the bug was not present. It, however, started occurring again regardless of what mods I had enabled. Haven't tried disabling OOO yet, but I shall soon.

Has anyone else ever had similar problems? This doesn't make the game unplayable but extremely irritating in battles.
I'm also fairly sure my hardware meets all requirements Oblivion has, and I have played the game fine on this PC before.

I still have a few mods to disable or tweak, but in the meantime, I'd like to know if anyone else has ever managed to fix this.

Thanks in advance!

TL;DR: Screen flickers in battles when getting damaged, how to fix?


EDIT / UPDATE: Oblivion Graphics Extender may have been the cause - I'm still testing around and trying to find out a way to enable it without the bugging.

What OBGE mods ya using?