@TheHawk
Crash Maybe, but getting a blue screen of death is the signature of a unhealthy system, Oblivion has been unstable for as long as Ive had my new machine but i have never had a BSOD, there is defiantly something very wrong with your PC (Hardware or software) if you are getting BSOD's. Last time i had a BSOD whilst Playing a game was playing crysis and it turned out that it was the first sign that my hard drive was dying, i would start running some diagnostics on your PC if i were you lol and try a cold boot re-installation of your video drivers.
@krathax
Is your GTX 295 factory Overclocked? i know that the gamebryo engine can be very sensitive to overclocking........or fast GPU clock speeds in general hahaha, i know it sounds weird but try down-clocking that card and see what happens.