So I go into my character creation screen and begin working on everthing, face and etc. I do all this and then go to type my name. Instead of letters, every key is either a number or symbol.

Also, I load a new game and I can't move with the WASD keys or with the 360 controller. I can only look aroudn with the mouse. Any guesses? It was working fine a month ago.

are you using a program that maps keyboard buttons to the controller, if yes, verify that all the settings match the keys set in the game.
if no, try resetting the controls to default.

if still no change, you may need to fix the keyboards language settings, perhaps a seperate setting for games.

Alright where will I find these settings. so far i've tryed all the other wierd junk, disableing and reenabling music, uninstall and reinstall, even the K-lite codec thing.

the keyboard settings are in your os (control panel), or if you have a keyboard with its own software (logitec) you will need to look for it in your start menu.

are you using a program that maps the buttons of your controller to the keyboards keys?

also, i recommend resetting all the controls to default (in game) and if you have made any changes to the oblivion ini, delete it so the game can re create it.
the ini file is in documents/my games/oblivion/oblivion.ini
you should back up your changes that do not deal with the controls section of the ini, so you can re apply them later.