Thanks Abramul, that made it work. By trial and error I found that 2 mods - Bartholm and Cheydinhal Pet Shop stop me hearing the prisoners kick start to the game speech. So with them deactivated I got past it and now can play on! :)
I have copied the esp file into my Data folder and used Oblivion Mod Manager to select it for loading and ensured it loads after main Obilvion program. I have done this with other mods no problems.
I am using Rens Mystic Elves and have the old "getting no conversation at begining with the prisoner who starts the game moving problem." I have installed KT_CustomRaceFix.esp in my Oblivion/Data folder,but no joy. Any ideas/alternatives?