I close the exe window and check but no LOD folder is created in my Data folder, and naturally buildings pop into view in the game (the part of all this I really I hate).
The last line in the TES4LODGen.exe 2.2.2 EXE window is that is is loading the unoffical patch GRUP....
So then I already tired a few things:
Switched to experimental version, 3.0.15.
Patched it to work with more than 2 gigs per the 4gb_patch.exe
Set it to run in XP compatibility mode
Move the EXE to my Oblivion folder
Removed the unoffical oblivion patch mod from my load.
Let it sit "working" for 2 hours.
I am using windows 7 but Oblivion (well actually almost ALL my game related programs) is not installed in the UAC.