I'm like 5 years late, but I'm still having issues. If I have camera mode enabled, so set to 1, I can't see my arms in first person, I just look through them. I would disable that, so set the Camera mode to 0, however disabling it puts the moronic dialogue zoom back, so it's back to being so zoomed in that I'm basically licking the NPCs face whenever I talk to them. The normal Oblivion.Ini file is being over run by the OblivionReloaded file, so changes to the fdlgFocus doesn't work either, and obviously changes to the deactivated camera mode won't do s#*!. Maybe I'm just picky, but is it really not possible to be able to see ones arms in first person and also not feel like I'm standing 2 inches from an NPCs face while I talk to them?