Ok so I have the steam version of Oblivion and its always worked fine but I recently updated my graphics card (Radeon6790) in preperation for Skyrim and now it freezes randomly.
It will be fine for a few seconds and then it'll freeze for a bit, my screen will come up 'auto adjust' as if im changing the aspect or something and a little icon at the bottom right hand side will come up saying the 'display driver has stopped responding and has recovered'.
After doing this a few times it will just give up and oblivion.exe is not working will say hai.

Ive tryed playing other games at max settings and they all work fine, having no other problems except with Oblivion

The resolution is 1024x768 (I dont really know what that means, I just use it because everything seems to fit the screen properly on it) Tryed playing in fullscreen and windowed mode but still doesnt work on either.

plshalpkthanks

Whenever you change hardware (and you haven't reinstalled the game) you need to delete the Oblivion.ini (configuration file) located at

C:\Users\\Documents\My Games\Oblivion

Do not delete the Oblivion_default.ini found in the main Oblivion directory.

edit: Also just for the heads-up, Oblivion will auto set your graphics options to medium. This is due to the 6-series Radeon not having a profile made.

1024x768 is the screen dimensions. 1024 pixels horizontally by 768 pixels vertically (if monitor's native resolution to output is 1:1). 1024x768 is common for 15" LCD (non-widescreen), 17" CRT and 17" LCD (non-widescreen). If your monitor is bigger you should change the resolution as it will make Oblivion look better.

Deleted the configuration file thingy and its still doing it.

What size monitor do you have?

Also try reinstalling your graphics device driver. Post your Operating System and I can link the file.

I use a 26'' lcd tv for my monitor and Win7 build 7600.
Uninstalling and re-installing with the disk now

Nup, still doesnt work after uninstalling and reinstalling.
Even tryed installing the drivers manually.
Guess Oblivion just doesnt like my screen, hope Skyrim will be ok ;_;

What's the make and model... 1024x768 isn't the native resolution...

Its really old, got it about 6years ago so cant remember what model but its Technosonic (Dont think they even make them anymore)
I'll just try getting a newer monitor for Christmas

edit: looked around and im fairly certain its a Technosonic LCD2603

Try setting Oblivion to the resolution: 1366x768 (widescreen).

Tryed all the resolutions and played about with the V synch and HDR / Bloom effect things but it still happens.
Im certain its just the gpu not liking the old monitor.

Get yourself a utility like Driver Cleaner. Download a fresh copy of the drivers you want to use. Reboot into safe mode, run driver cleaner, and nuke ALL of your video drivers. (and if you had an nvidia card before, make sure those get nuked as well.) Reboot again. When the new hardware wizard comes up, just cancel if you can, if not, let it do its thing. Once you get out of it, install the drivers you really want. See if that doesn't adjust it's attitude any.