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There might be other newer versions of these mods I use, but you'll get the idea:

- Unofficial Oblivion Patch
- Oblivion Mod Manager
- OOO (Oscuro's Oblivion Overhaul) - a must have that changes leveling, adds quests, mobs and tons of stuff, but also includes other essential mods such as an economy mod and a Natural Environment mod combo
- Oblivion Animation fixer
- Open cities
- Quarl's Texture pack 3 redimized (get one that suits your hardware)
- Deadly Reflex

These are the major, drastic ones that are important IMO.