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Thanks for the help guys.

Problem solved.

It has no quest update though, it's stuck at "etc I heard a noise etc" in the quest journal.

Do I just go back to the board or what?

On the death fairy bounty, I killed her and it said "what was that noise?"

I saw two bone flayers and a summon demons and killed them, it did nothing.

What do I do next, I try exiting the dungeon but it does nothing.

I want a mod that gives you a lot of space in your inventory, or something along the lines.

Before you ask me to do it myself, I'm shit at tes constuct and don't know how to mod oblivion for crap.

Is the x in a lake and how do I get their?

Not sure exactly what you are referring to. It would help if you were a bit more specific. I think you are wondering about the "treasure map" note you find in your chest? If that is what you mean then, no, the "X" is not in the lake. It is on an island ...

And why when I get confronted by that guy if you can give him 20 coins or not, I gave him 20 coins and I tried to enter the coach, oblivion crashed.

Is the x in a lake and how do I get their?

Or do I encounter the location later on in the main quest?

I tried reinstalling it to and with the copy oblivion folder option on.

Their's no copied oblivion folder in the nehrim/exe/etc.

I tried completely disabling UAC and runnning the setup and launcher in admin, nothing works.

I can launch the game, well kind of, I copied the bink file from the oblivion folder and the oblivion exe into the nehrim folder, when it starts up, it's stuck at 0 and it crashes.

I have the launcher on admin permission and I have window's 7 64x.