» Sun Dec 19, 2010 1:25 pm
What da mage said is correct, in Oblivion, wearing armor causes a penalty to the effectiveness of spells. The penalty, as I understant it, increases with the weight of your armor, and a higher armor skill reduces it. Somewhere in your character menu, I'm pretty sure it's in your spell section, though I don't recall exactly since it's been a little while since I played Oblivion, you should see "spell effectiveness" or something along those lines. This, as it's name would imply, modifies the effectiveness of your spells, spell effectiveness is at 50%, for example, your spells will have half the effectiveness they would normally have, if you wear any piece of armor, it will go below 100%, I believe the highest it can reach with armor is 95%, which makes the penalty neglegable, but present. I'd say extra armor is worth a sacrifice of having spells 5% less effective than they should be.
If you're not wearing armor at all, then I don't know what's going on.