This is definitely mod-related, as loading the game without any mods causes the issue to go away. Now, I need help in figuring out which mod this is. Here's my full load list, as taken from Wyre Bash:
Spoiler
Active Mod Files:00 Oblivion.esm01 TR_OoT_Main.esm02 Jog_X_Mod.esm03 You Are Here.esm04 Francesco's Leveled Creatures-Items Mod.esm [Version 4.5bSI]05 Cobl Main.esm [Version 1.71]06 Mart's Monster Mod.esm [Version 3.7b3p3]07 CM Partners.esm08 Easy_Companion_Share.esm09 Younger Hotter NPC's v1.0.esp [Version 1.0]0A Beautiful_Women_SI.esp0B Beautiful_Women_Vampires.esp0C Unofficial Oblivion Patch.esp [Version 3.2.0]0D DLCShiveringIsles.esp0E Unofficial Shivering Isles Patch.esp [Version 1.4.0]++ MOBS SI.esp [Version 1.2.2a]0F LoadingScreens.esp10 LoadingScreensAddOn.esp11 LoadingScreensSI.esp12 Natural Selection.esp [Version 1.0]13 Natural_Weather_non-HDR_2.1.2_bugfree.esp14 Natural_Habitat_by_Max_Tael.esp15 Natural_Water_by_Max_Tael.esp++ Louder Nirnroot Sound.esp16 AliveWaters.esp17 AliveWaters - Koi Addon.esp18 AliveWaters - Slaughterfish Addon.esp19 Ayleid Loot EXtension.esp++ Item interchange - Extraction.esp [Version 0.78]1A P1DseeYouSleep.esp1B Purge Cell Buffers - Loading.esp [Version 1.0.0]++ VA_BetterGold.esp1C SI Living Economy.esp1D Choices and Consequences.esp [Version 2.1]1E DLCHorseArmor.esp1F DLCOrrery.esp20 Choices and Consequences - SM Plugin Refurbish - Orrery.esp [Version 2.0]21 DLCVileLair.esp22 DLCMehrunesRazor.esp++ MaleBodyReplacerV4.esp23 AyleidMeteorIronWeaponsBASE.esp24 AlternativeLightArmors12.esp25 Battledress.esp [Version 1.2]26 ClassyClothingCompendium.esp27 DaedricCrescentBlade.esp28 LootableLichHelm_Hvy.esp29 Rogue Sun's Blood Lust Dress.esp++ RustyItems.esp++ RTFemaleReplacerV12.esp2A SickleIrons_RT.esp2B SilverwareWeapons.esp2C VA_DaedricPriestessArmour.esp++ VA_FemmeDaedricHelmet.esp2D Wyrmfang.esp2E RogueLeather.esp2F LeatherHunterArmour.esp30 Daedric Lord Armor.esp++ LadyDeadlock_LoveYourHorse.esp31 DLCThievesDen.esp++ Francesco's Optional Vendor Tweaks.esp32 Francesco's Optional Leveled Quests.esp33 Francesco's Optional Leveled Arena.esp34 Francesco's Optional Files 2.esp35 Cobl Glue.esp [Version 1.69]36 Cobl Si.esp [Version 1.63]37 Mart's Monster Mod for Fran.esp [Version 3.7b3p3]++ Mart's Monster Mod - Shivering Isles.esp [Version 3.7b3p3]38 Mart's Monster Mod - Additional Enemy NPC Vars.esp [Version 3.7b3p3]39 Mart's Monster Mod - Gems & Gem Dust.esp [Version 3.7b3p3]3A Mart's Monster Mod - Hunting & Crafting.esp [Version 3.7b3p3]3B Mart's Monster Mod - Looting NPCs & Creatures.esp [Version 3.7b3p3]3C Mart's Monster Mod - Durability & Damage.esp [Version 3.7b3p3]3D Mart's Monster Mod - Fran's leveled quests.esp [Version 3.7b3p3]++ Mart's Monster Mod - Less Rats.esp [Version 3.7b3p3]++ Mart's Monster Mod - No Adventurers.esp++ Mart's Monster Mod - Spawn Rates - Reduced.esp [Version 3.7b3p3]3E Mart's Monster Mod - Safer Quest Locations.esp [Version 3.7b3p3]3F Mart's Monster Mod - Dungeons of MMM.esp [Version 3.7b3p3]40 Mart's Monster Mod - More Wilderness Life.esp [Version 3.7b3p3]41 Mart's Monster Mod - City Defences.esp42 Mart's Monster Mod - Extra Wounding.esp [Version 3.7b3p3]43 Mart's Monster Mod - Farm Animals.esp [Version 3.7b3p3]44 kuerteeWanderingEncounters.esp++ MMM-Cobl.esp [Version 1.69]45 Ivellon.esp [Version 1.8]46 adTreeHome.esp47 AyleidArrows.esp [Version 1.8]48 CDEP_FanaCeya.esp49 Fort Baltsine.esp4A Gaenor in Dementia.esp [Version 2]4B Heroes of Cyrodiil.esp4C Heroes of Cyrodiil Part 3.esp4D Heroes of Cyrodiil Part 4.esp4E Kragenir's Death Quest.esp4F KDQ - Rural Line Additions.esp50 OldCrowInn.esp51 RuinsOfBrenfa.esp52 Spear_of_Bitter_Mercy.esp53 sunk ships.esp54 The Ayleid Steps.esp [Version 3.4]55 thievery.esp56 TR_Stirk.esp57 Torynwyll.esp58 VOILA - Soldiers of Empire.esp59 Cyrodiil Travel Services.esp [Version 2.0.6]5A DLCBattlehornCastle.esp5B DLCFrostcrag.esp5C Knights.esp5D SM Plugin Refurbish(Merged).esp [Version 1.21]5E The Lost Spires.esp5F ElsweyrAnequina.esp60 Feldscar.esp [Version 1.0.2]61 Faregyl.esp [Version 1.0.10]62 xuldarkforest.esp [Version 1.0.5]63 xulStendarrValley.esp [Version 1.2.2]64 xulTheHeath.esp65 MMMMWL-TheHeath patch.esp66 XulEntiusGorge.esp67 xulFallenleafEverglade.esp [Version 1.3.1]68 LostSpires-Everglade patch.esp [Version 1.2]69 Anequina-Fallenleaf-Patch.esp6A xulColovianHighlands_EV.esp [Version 1.2.1]6B xulBeachesOfCyrodiilLostCoast.esp [Version 1.6.4]6C KragenirsDeathQuest-LostCoast patch.esp6D xulBravilBarrowfields.esp [Version 1.3.2]6E xulAncientRedwoods.esp [Version 1.6]6F xulCloudtopMountains.esp [Version 1.0.3]70 KragenirsDeathQuest-CloudtopMountains patch.esp71 KragenirsDeathQuest-RollingHills patch.esp72 xulBrenaRiverRavine.esp [Version 1.0.2]73 xulAspenWood.esp [Version 1.0.1]74 Natural_Vegetation_by_Max_Tael.esp75 Harvest [Flora].esp [Version 3.0.0]++ Harvest [Flora] - Shivering Isles.esp [Version 3.0.0]++ Harvest [Flora] - DLCVileLair.esp [Version 3.0.0]76 Harvest [Flora] - DLCFrostcrag.esp [Version 3.0.0]77 Bag of Holding.esp [Version 1.5.0]78 Cliff_BetterLetters.esp [Version 1.1]79 Cliff's Shacks Basemants-Radiant AI.esp [Version 1.0]7A DS Less Predictable Respawn.esp [Version 1.1]7B M.O.E. - Lycanthropy and Lichcraft.esp [Version 7]7C P1DkeyChain.esp [Version 5.00]7D persuasioncompatable1.8.esp7E Salmo the Baker, Cobl.esp [Version 3.08]7F Quest Award Leveller.esp [Version 2.0.1]80 Quest Award Leveller - Vile Lair.esp [Version 2.1.0]++ Quest Award Leveller - Mehrunes Razor.esp [Version 2.1.0]81 RealisticForceMedium.esp82 SetEssentialActors.esp83 SupremeMagicka.esp [Version 0.89]84 SM_ShiveringIsles.esp [Version 0.86]++ SM_MMM.esp [Version 0.89]85 MidasSpells.esp86 Syc_AtHomeAlchemy.esp87 attack and hide medium v2.1.esp88 Deadlier Traps.esp89 sycHearNoEvil.esp [Version 1.0]8A sycSHOUT.esp [Version 1.02]8B Enhanced Grabbing.esp [Version 0.4]8C SamVimes's Feint Death.esp++ Francesco's Slower skills x1.5.esp8D actors_in_charge.esp++ Item interchange - Placement.esp [Version 0.78]8E tkHairPack01.esp8F Slof's Playable Xivilai.esp90 CM Partners.esp91 CM Partners Extra NPCs.esp92 SPAWN.esp [Version 0.3]93 Get Wet - just droplets.esp++ Real Lava 1.3.esp** Cava Obscura - SI.esp** Cava Obscura - Cyrodiil.esp++ ElsweyrAnequinaFemaleBody.esp94 Aeren.esp95 Nightshade_Armor_ConflictFree.esp96 Alkwynd.esp97 WellDiver.esp98 Streetvendors.esp99 Sunken Chapel.esp9A RTBlackEveningDress.esp9B kdRhazed.esp9C PTFallingStars.esp9D DarknessHollows.esp9E P1DfemDwarven.esp9F BFG's Enhanced Armory.espA0 Steel_Cuirass_Female_by_rTw.espA1 Creature Damage Fix.esp [Version 2.2]A2 PTMudwater.espA3 Capucine'sEyeSelection.esp** Cava Obscura - Filter Patch For Mods.esp++ Cobl Filter Late MERGE ONLY.esp [Version 1.53]A4 Bashed Patch, 0.esp
And here's a screen-shot of the bug, to make things clearer, this is in third person mode:
http://img543.imageshack.us/img543/4428/screenshot475.png