I have this problem when making textures for both Oblivion and FO3. For some reason, my textures seem to have closer LOD ranges than everything else, so basically, unless you're right up in their face, they are really low-res. It's probably something I'm doing wrong when exporting the DDS from Photoshop, but I can't for the life of me figure out what it is I have to change. If someone could link me a page where it lays out the necessary export settings for the various texture types (texture, normal, glow, alpha, etc.) that'd be a lot of help. I remember seeing like a table showing you all the different ones, but I can't seem to find it anymore and it's probably pretty out dated as it was around when Oblivion first came out.

Are you saving the textures with at least 4 mip maps? The mip maps are used for clarity at different distances.
It also could be your graphics settings, especally if you have them set low.

My settings are mid-high, and I only noticed because they are different from all the other textures' clarity distances. When I go to export the default Mip Maps is 4, and I've never played with that setting before, so it shouldn't be any different now, but I'll try it out just in case. Thanks for the reply WillieSea.