So like many people who run Steam i decided to get the GOTY edition when it was on sale today, i've only just installed it this afternoon and i've noticed a wierd graphical problem which is hindering my ability to play.
The problem is that the entire game screen (when in fullscreen mode) is displaced about an inch to the left.
I've never encountered such a bug, i suspect it has something to do with my video card.
I'm running a new this year acer aspire X3400 with:

OS: win7
Memory: 4gb
Processor: AMD athalon II x2 215 2.7 GHz
Videocard: NVIDEO GeForce 9200

I know my videocard is outdated but i can't see why that would effect a game that is as old as Oblivion...

Suggestions?

Try playing with the scaling options in the NVIDIA control panel, You should be able to access it from the Windows Control Panel by going to Apperance and Personalisation.

When you made the odd statement about "knowing my video is outdated", you are saying two things that can't be allowed to pass without comment. You used the word "CARD", when there never was any such as a discrete separate circuit board that plugs into a mainboard. The only 9200 was a mere onboard chip buried inside of the nVIDIA Chipset's ASIC, and the main thing to know about any IGP isn't is age, but rather its extreme weakness and slowness. Only Intel made worse IGPs when the 9200 was current, that's how bad it was.

You need to run lower than normal screen resolutions with such hardware, no matter that Oblivion is now five years old. Last week Newegg had a special on a Radeon HD 4650 for $30 after the mail-in rebate, which was a tremendous bargain.

Well thanks for the information i'll see about upgrading soon for Skyrim at the very least.

I can't find the scaling options, is there some heading it would be located under?