Oblivion is hardly demanding.
A Radeon 3200 can be overclocked, when overclocked you can max Oblivion out at a 1024x768 resolution, provided of course your IGP (It's a GPU built into the motherboard) has Sideport memory.
Got a Radeon 3000 IGP in my secondary rig; overclocked the IGP to 1ghz and I can max Oblivion out and run Crysis on Medium at 1024x768.
However with that said... Even the lowest of low-end cards outperform the Radeon 3000/3100/3200/3300/4200/4250/4290 (They are all essentially the same performing parts just with different clock speeds.)
A cheap card like a Radeon 5450 would provide multiple times more performance.
But Oblivion demanding? Hardly.
You can run it on 10 year old Graphics cards with the assistance of Oldblivion.
--::{PC Gaming Master Race}::--
