Turn based. The real-time combat in Oblivion and Fallout 3 was more awkward than in a dedicated hack-and-slash or first-person shooter. I loved using VATS, eventually relying on character builds that use it exclusively, but I'm becoming somewhat annoyed at the sword-based combat as I fight through Oblivion. As I've mentioned elsewhere, I'm considering building a necromancer character because I love to watch fighting in Oblivion - I just don't enjoy the participation.
Besides, I like my success in an RPG to be based largely on stats and the cleverness of my character builds. For that reason, River City Ransom will never qualify as a true RPG in my mind, despite all those fond memories of attacking the final boss with my friend, both of us using level 1 characters with no abilities.