Currently:

No OBSE.
Shivering Isles
Unofficial Oblivion Patched

My mods are:
Race, Quest, Locations, Armor, Clothing

There is only a small handful of patches for the quests, etc, nothing that should cause this:

One idles mod, disabled it and it still happens.

About 50 feet away from me, and most NPC's stop dead.

At the IC Waterfront all of the NPC's with the exception of the guards stop 50 feet away from me and won't move. I thought it could be the animation freeze bug, so I tried the fix (OAF) and it didn't seem to help.

I thought it was limited to just females so I took off the sensual idles, but that didn't solve it, since the waterfront's homeless were also stopping, yet the guards keep on wandering.

Any suggestions on how to correct this?

GuruSR.

I've found the issue and will be contacting (if possible) the mod author, though for reference here is this information:

http://www.tesnexus.com/downloads/file.php?id=31465

Apparently nVidia users cannot use this race safely.

Still no idea why a race would cause this sort of issue, perhaps someone with more insight on this could elaborate.

GuruSR.