Damn. I wrote a long post but tried to include a screenshot and the forum shouted at me so I lost it.

So. I have a problem. I want to finish oblivion so I can start skyrim but the game is looking terrible.

I have a 2.4ghz, 4gb, ATI HD5700HD, 3 year old computer. So it should be well above what is needed to run oblivion even at max settings. Yet my game looks like I'm running it 10 years ago on my old computer with oldblivion.

The whole scenery is covered in ugly fog.
I would like to show you a screenshot but I can't.

Any ideas as to what causes such fog in oblivion and how I can get oblivion looking if not good at least playable?
Its really annoying when I should be running it on beautiful max settings.