This guide literally took me about 2 weeks to perfect, and I think about 3-4 complete reinstalls of Oblivion. So I hope you appreciate this and it helps you. There's really not much information out there about setting up Oblivion in this way, and this guide WILL make your game look very very good. So lets get to it. 
With my setup and ENB I get 45-60 fps, however Oblivion will run at 60 fps most of the time just so you know. Also I recommend starting a new game and also a fresh install of Oblivion (Make sure your Oblivion.ini files are fresh also, Documents\My Games\Oblivion).
-Step 1
*VERY IMPORTANT*
Launch the game for the first time, when the Launcher appears go to options, and set to Ultra High. Change your resolution size and launch the game.
In-Game, go to VIDEO, Set ALL settings to max, EXCEPT: Self Shadows, Shadows On Grass, Bloom, Water Ripples, Anti Aliasing (These all must be turned off).
The Following videos will make your game look like mine, however for the sake of simplifying the process, I recommend Installing the TES Mod Manager for Oblivion, Unofficial Patches, OBSE, 4GB Patch, Obilvion Reloaded, A Tweaked ENB, and wait on installing all the extra mods. get the graphics right first then install everything else (If you want it).
Also I don't know if you like to use Darnified UI, but I was having trouble with getting it to work with the graphics. After Installing DarnUI its makes changes to your Oblivion.ini and you don't want this to happen after you add your adjustments. Furthermore if you copy the Oblivion.ini and try to paste it back in at a later time, it will cause the .ini file to be bugged, not allowing any changes made to the .ini file save correctly. The simplest thing to do to correct this is to install DarnUI and its requirements FIRST after your fresh install of Oblivion.
-Step 2
You need to follow the instructions in this video:
https://www.youtube.com/watch?v=oaYm5_7B-DI&index=8&list=PLMt7GOIPMZsOtQPqtEx0O-1QigYx61nX0
*Note*
I don't like Candid ENB, the shaders are way too dark, the screen has a strange blurry effect (Not DoF) and the hit to performance is too great. I've testing several ENB's and "A Tweaked ENB" is the best option I've found.
Now Oblivion Reloaded is very Important with this build because it adds water effects that you CAN get to work with ENB, (Even though the authors say its not compatible) also the DoF in OR is better than the DoF in ENB.
-Step 3
This video is a followup to the one above, the fixes in this video are 100% necessary:
https://www.youtube.com/watch?v=7y1vviDEJiM&index=12&list=PLMt7GOIPMZsOtQPqtEx0O-1QigYx61nX0
-Step 4
Next are the adjustments I made to eliminate bugs I found as well as small graphic improvements:
Oblivion\Data\OBSE\Plugins folder, and open up Oblivionreloaded.ini
[MAIN]
Fov 90 (OPTIONAL: If 90 is too wide of an effect for you, default is 75)
[SHADERS]
EnablePOM Off
EnableDepthOfField On
Save and Close!
Oblivion/Data/ini/OblivionReloadedEsp.ini
--Loader configuration--
Make sure evrything here is set to (0), EXCEPT LowHFSound set to (1)
Save and Close!
-Step 5
Final step 
Go to your Oblivion game Folder where your Oblivion.exe is:
Locate enbseries.ini open it and edit these values
[EFFECT]
EnableAmbientOcclusion=false
EnableDepthOfField=false
EnableSunRays=true
[COLORCORRECTION]
Brightness=1.00
Save and Close!
That's it, I hope this was easy to read and follow. Now you can install any textures or other mods you want.
In my game I installed all the texture mods from the videos above, however you should know the guy in the video installed some of them incorrectly. Just download all the mods manually and extract them, you might have to correct the file directories and repackage the mods.
If you need anymore help let me know. If I don't respond right away, I will as soon as I can.
Good Luck, and Have Fun! 
P.S.
Here are some really usefull videos for making Oblivion more stable, if you decide to use these, I would install the mods in the descriptions after all others from above.
https://www.youtube.com/watch?v=oPERkXMHGmE
https://www.youtube.com/watch?v=pklwFYH5MTg
Replies
Interesting! I've been thinking about modding Oblivion lately, and this looks very helpful. Wondering if you have any thoughts on either of these guides/lists:
Wow this almost passes for skyrim. I might just give Oblivion a chance just to try this.