I'm interested in what video settings the console version use so I can compare screenshots.(Lot of time on my hands at the moment). The main reason I'm doing this other than for fun is to prove to a friend that the PC version is the best graphically, he goes on and on how the PS3 version looks better.

The console versions run the game at just under high settings. The game is only rendered in 720p on the consoles. They use 2x Anti-Aliasing if I remember correctly.

If the PC has a fairly powerful GPU in there, it looks much better then the console versions. With the PC settings, you have a bunch of options that are not accessible to the consoles. Including tree/actor/object fade. This way you can balance performance with quality. And there is always ways to force the drivers to do HDR and AA at the same time with a much higher threshold for AA settings.

Does the console versions use HDR or Bloom and exactly which resolution is 720p? I also remember seeing on a site that said the 360 version can run 1080i.

Its been about 3 years since I played Oblivion on a console, but I do think it uses Bloom. (Possibly wrong on that)
720p is 1280x720, while it can upscale the game to 1080p, to be displayed on a 1080p TV/monitor, it will not look as good as a true 1080p render.

Your right about that it does use Bloom, the console versions are not that bright. So I'm going to test out these settings when I get home, so what I do is open the launcher hit high settings, turn on bloom and 2x aa and it set it to 1280x720 and it should look like the console versions?

Pretty close, it will probably look slightly better, but thats around the settings that the console plays on. Also the consoles only play games at 30FPS usually.

I've tried out the settings and there is not any noticeable difference between Oblivion on Bloom, 2x AA and run at 720p besides the image being widescreen and not fullscreen. Oblivion on Bloom, 8x AA and run on 1440x900 exactly the same except it is in full screen. Also what is really weird about it is that on the console settings frostcraig spire can be seen in the background and on the Max my PC can possibly go it is partly faded. Yes I checked the draw distance was max on both, what is also weird is when I change the Max settings to HDR and 8x AA the spire is completely clear just like the console. I had my graphic mods unistalled for my comparison so it was the vanilla Oblivion. Will post the pics once I get them off my 1TB external.

Just a small correction: PS3 and Xbox 360 versions use HDR, not Bloom.

As for the rest, both use settings that vary from medium to high - grass fading is set to a lower value, I guess. PS3 version does not use AA but Xbox version does. PS3 version has a small advantage over the Xbox version: some textures (not all, mind you) are better and it has a slightly better draw distance. But object and item fading are set to a lower value on both consoles, as well as actor fading.

I think I may have screwed up my PC oblivion. On max settings some of the textures are really bad compared to the PS3 version. I think some of my mods are causing this.