I got an ATI Radeon HD 5700, But when it selects the automatic settings it sets it to very Low.What is up with that? This should be able to run it at very high settings.

It's probably either an HD5770 or an HD5750, in fact.

Anyway, that thing you describe? Totally normal. Adjust the settings yourself, to whatever you think the system can handle. Likewise, you can alter further settings, from the main menu in Oblvion itself, before or during play. Dunno if it's just me, for example, but the dumb thing had Bloom *and* HDR selected when I installed and first ran it. So I disabled Bloom, and maxed all the sliders, and restarted the game, thank you very much.

tl;dr: nothing to worry about.

The problem is that the card was released after the game --- and Nvidia had an FX57xx series that the autodetect for the game mistakes them for -- and to make things worse the old Nvidia FX57xx series had some serious problems with the shader implementation that caused BETH to patch the game and add Ultra Low settings that disable the shaders for in order to allow the game to run properly on them. What you need to do is run the launcher and use the presets to select Ultra High instead -- this will adjust the ini to turn the shaders back on and let the game work properly (NOTE: this will have to be done each time you update your video card drivers since the autodetect will run again) - unfortunately the in game adjustments do not have settings to enable the shaders (at least not that I know of) so you need to use the preset first and then afterwards make the other adjustments in game like normal.

ok put it on Ultra High and it runs pefectly.