Oblivion is not fully patched if it's something you have to do manually. Could that cause it to not work? I'll patch it now.
EDIT: Patched, did not solve. It is not a localized version
EDIT 2: Wow. So I just tried something else, I deleted the \Nehrim off the end of the path so it would extract directly into the Oblivion folder, and it FINALLY let me continue the extraction without saying I had the wrong path. I was so excited. However when I ran it.... it just ran normal Oblivion. I knew right away it hadn't worked because Nehrim has such a different starting screen. So, back to square one.
EDIT 3: Heh, thought I had it fixed again.... I hadn't clicked the boxes to ENABLE Nehrim in the Data Files.... However when I did so and ran it... it still runs just normal Oblivion.....
EDIT 4: Now I'm even worse off. I clicked Settings, just to mess around.... it said it created a new oblivion.ini file, and now every time i try to start it, it just says "oblivion has stopped working, windows is checking for a solution" So now I can't even start it at all.