Hi, I'm just wondering what exactly the OBSE is... I'm trying to download a certain mod and it says it requires it. Yet the site for the OBSE: http://obse.silverlock.org/, says that it doesen't work with the latest Oblivion patch or something? I have GOTY so I'm thinking I have the latest patch...

Can anyone help out here?

Get it. It extends the script capacity for Oblivion modules. It does not say that it does not work with the latest patch. It requires the latest patch (version 1.2.0.416). You misread, but, yes, GOTY is already patched to the latest version. Do not worry about it. Get the v18 beta, and make sure you have the http://www.microsoft.com/downloads/details.aspx?familyid=A5C84275-3B97-4AB7-A40D-3802B2AF5FC2&displaylang=en installed.

OBSE stands for Oblivion Script Extender. It adds alot more functions into the game that modders can make use of, allowing them to do things that would be impossible with just the default engine. Yes you should get it, the best mods out there require it. And you don't need to worry about your version, you're obviously misreading what the site says. The latest patch is required for it in fact. The GOTY version comes fully patched so you're OK.

Ok, I've got the thing downloaded. I noticed the launcher for it acts as the OB exe itself... can I not use it with the Oblivion Mod Manager? Because some of the mods I'm, well, managing, are supposed to use OBSE...so... what to do?

You don't need to use the Launch Oblivion button in OBMM for any reason. It won't affect anything to use the OBSE_loader.exe directly.

That said, if OBSE is installed, then OBMM will automatically use the OBSE_loader.exe when you push the "Launch Oblivion" button. So either way you should be good.

You should make a shortcut to the Obse_launcher.exe after installing OBSE, and remove the shortcut to the regular launcher from your desktop or wherever so that you do not accidentally launch the regular version. Now that you are using OBSE mods, you should no longer use the other launcher.