IxionIndustries said:
Just put all the data into the data folder.. Unless your on 360. Then it's a little complicated.
Then you turn it on as you would a DLC.
no
don't listen to this guy.
If you're going to EXTENSIVELY mod your Oblivion, you NEED to use both Oblivion Script Extender (OBSE), and Oblivion Mod Manager (OBMM). You can find both on TESNexus, or by google.
OBMM will help maintain file/folder structure, and all popular mods are designed to work with it.
Download the mod, open OBMM, use the Package Manager, load the 7v file (it's a zip format that's standard with Oblivion/Fallout 3 mods) within the OBMM program.. then activate the package it gives you, and then in the OBMM itself, activate the mod.
A note, in OBMM, the order of the addons in the list is actually the order that the mods will load.. Oblivion itself should always be on the top, and Shivering Isles or any other DLC should be second, thrd etc.. Most mods don't conflict with other mods, so load order isn't important, but if you have mod problems, changing the load order might fix it.. Generally you want things that effect the game in general to be higher, and then things that only effect small bits of the game to be lower.
If you DONT use the OBMM, and choose to manually install your mods, when you start installing mods that change the textures of the game, you WILL inevitably cause texture errors in the game. It's almost guaranteed. So learn how to use OBMM and love it. OBSE will allow more complicated mods, and many mods require it. Once it's installed, it runs through OBMM, so you don't need to worry about it.
My only real MUST HAVE mod is S.P.A.M. It allows you to set your standard stat bonuses when you level up, allowing you to level up at your leisure without micromanaging your skill gains. You can manually set your stat bonuses (from +0 to +5), or you can follow a small script that will give you appropriate stat bonuses for your class roles.