I had the same issue. This is the solution: Open Tools -> Settings -> Workarounds Open Executables Blacklist Delete Steam.exe from the list and press OK.After doing this, Zuun's solution works perfectly, with Steam fully closed. Zuun's and this solution work! I tried for a VERY long time to get this working, following every solution there was online. The official posts on Nexus and every other source seem to suggest that this is YOUR problem, that somehow you have done something wrong. I was convinced I had not! This solution requires you to have steam shut down before launching. Then it launces the usual lancher (which feels wrong) just click play.. Dont add data files.. nothing. Just follow the two posts and the solution seems to be magic!! Don't question it, just thank these guys and go play Oblivion!