I have an odd audio problem. My HD audio card is has up to date drivers. It works fine with any other program. However in oblivion, when I enter a conversation with an NPC I can not hear them. However I can hear them make comments to me when walking by or can listen to them talking to another. There does seem to be an odd thing though that if I am not looking right at them or am at certain angles to them I can not hear them.

Does anyone have any insight?

Check your speaker configuration. This is usually the result of a the game looking for a center channel speaker, that isn't there.

I am using my headphone jack to go into my stereo. I also have the sound card set to the headphone setting.

Is that in the advanced speaker options? (I am on XP, so, things may have been shuffled in later operating systems....)

I don't recall if there was an in-game configuration as well..... might wanna look. (might be in the launcher too for that matter.)

Well I am now using my sound cards digital output which is now utilizing all the speakers of the stereo. But alas, I am still having the same problems with the in game audio.

There are no advanced audio controls in the launcher or in the game. There are only volume sliders in the game and I can find no options in the launcher. This is pretty frustrating.